A pooled investment fund whose shares trade on a stock exchange throughout the day and whose share count can change through creation and redemption.
From this site’s articles: "ETFs are not operating companies. They are investment vehicles that hold baskets of underlying securities."
Quoted passages come from the articles on this site.
Covered in: Why ETF Liquidity ≠ AUM · ETF Market Structure Explained (book)
Related terms
Go deeper: books by Will Lee, CFA
For advisors, investors, and new team members: a jargon-light foundation in creation/redemption, intraday value, and common liquidity myths.
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Disclaimer
This material is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security.
All views expressed are the author’s own and do not represent the views of any employer or affiliated organization.