Exchange Traded Fund Definition Tuesday, October 23, 11:24 AM ET
An exchange traded fund, or ETF, is an investment fund that trades on stock exchanges like a stock. Assets such as bonds, commodities, and stocks are held in the ETF, and the fund will trade close to its net asset value. By owning ETFs, investors are able to diversify their holdings, and also have the ability to buy on margin, sell short, and to buy as few shares as they like.
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