Exchange-Traded Fund (ETF)
Fund trading on exchanges like a stock
What is Exchange-Traded Fund (ETF)?
Exchange-Traded Fund (ETF) A fund that trades on stock exchanges like a stock, typically tracking an index, sector, or asset class. Popular options underlyings like SPY (S&P 500), QQQ (Nasdaq 100), and IWM (Russell 2000) are ETFs. ETF options offer portfolio-level exposure with options flexibility.
Complete Definition
A fund that trades on stock exchanges like a stock, typically tracking an index, sector, or asset class. Popular options underlyings like SPY (S&P 500), QQQ (Nasdaq 100), and IWM (Russell 2000) are ETFs. ETF options offer portfolio-level exposure with options flexibility.
Example
Instead of buying options on 500 individual stocks, you trade SPY options to get broad S&P 500 exposure.
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