Definition of «etf»

Usage examples

1. ETF stands for Exchange-Traded Fund and is a type of investment fund traded on stock exchanges.
2. An example of using the word 'ETF' in a sentence could be: "I invested in an ETF that tracks the performance of the S&P 500 index."
3. Investors often use ETFs to diversify their portfolio as they can buy shares in a single ETF representing a wide range of assets.
4. Another example: "John decided to invest in an ETF focused on renewable energy companies to support his long-term sustainability goals."
5. ETFs are simpler and cheaper compared to mutual funds as they aim to replicate the performance of an index rather than actively managed.
6. For instance: "Sarah chose to invest in an ETF that tracks the technology sector because she believes in its long-term growth potential."
7. ETFs allow investors to buy or sell shares throughout the trading day, similar to stocks.
8. Example: "Instead of buying individual stocks, Mike prefers to invest in ETFs to gain exposure to various sectors and minimize risk."
9. There are different types of ETFs, such as equity ETFs, bond ETFs, commodity ETFs, and sector-specific ETFs.
10. Example: "Anna diversified her portfolio by investing in both domestic and international equity ETFs to reduce the concentration risk."
11. ETFs have gained popularity among retail investors due to their flexibility, transparency, and ability to offer broad market exposure.
12. Example: "New investors are often advised to start with ETFs as they provide a simple way to gain exposure to different asset classes."