Investing Basics

What Is an ETF?

An exchange-traded fund (ETF) is a fund that holds a basket of assets, such as stocks, bonds, or commodities, and trades on a stock exchange like an individual stock. Its price changes throughout the trading day. Many ETFs track an index, while others follow active strategies.

Key Features

ETFs are bought and sold through a brokerage account at market prices, which can differ slightly from the value of the underlying holdings. They charge an annual expense ratio.

🧮 Calculate It Yourself

Put Exchange-Traded Fund (ETF) into practice with these free calculators — no sign-up, nothing stored.

📐 ROI Calculator Return on investment, net gain, and annualized ROI — any currency. Calculate → 📈 CAGR Calculator Find your investment's true annualized return. Calculate →

🔗 Related Terms

Mutual Fund Index Fund Expense Ratio Brokerage Account

More Investing Basics Terms

📖 Browse all glossary terms or explore all free calculators.

Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.