Glossary
ETF (exchange-traded fund)
A fund whose shares trade on a stock exchange like a single stock, usually tracking an index, a sector or one asset such as bitcoin.
An ETF holds a portfolio, such as all the stocks in an index, or a single asset like gold or bitcoin, and issues shares that trade on an exchange throughout the day. Buying one share gives exposure to everything the fund holds.
The number of shares changes through creation and redemption with large firms called authorized participants. That process is what daily ETF flow figures measure.
ETFs charge an annual fee called the expense ratio, taken from the fund’s assets. The share price can drift slightly above or below the value of the holdings, though the creation process usually keeps the gap small.
Related terms
For education only, not financial advice. Crypto assets and stocks are volatile, and leveraged positions can lose more than the money you put in.