What Is An Exchange Traded Fund (ETF)

An Exchange Traded Fund, or ETF, is a synthetic asset which is designed to track the price of an index or commodity. ETFs can be bought and sold on a stock market like any other asset, even though it may be impossible to actually buy the asset they are based on.

ETFs can track an index by essentially being a portfolio holding the exact same stocks that make up the index in the exact same proportions, thereby mirroring the index.

Some common ETFs are based on the major global financial indices (S&P500, FTSE etc.) or on popular commodities such as gold. The most well known is called the Spider and this tracks the S&P500.

Related Terms

Return to Finance Dictionary

Start Discussion

Popular Content See all

HELP: Sticky Situation with Boss
+155OFFby 2nd Year Analyst in Investment Banking - Mergers and Acquisitions">Analyst 2 in IB-M&A
Arranged Marriage
+40OFFby Intern in Real Estate - Commercial">Intern in RE - Comm
Ask a girl
+36OFFby 1st Year Analyst in Investment Banking - Generalist">Analyst 1 in IB - Gen
tipping point - mental breakdown
+33IBby 1st Year Analyst in Investment Banking - Industry/Coverage">Analyst 1 in IB - Ind
To Snitch or not to Snitch?
+32OFFby 2nd Year Analyst in Investment Banking - Industry/Coverage">Analyst 2 in IB - Ind
Would you date a girl without a college degree?
+31OFFby Intern in Consulting">Intern in Consulting
Caught relaxed vibing to music by my MD
+17OFFby 1st Year Analyst in Investment Banking - Corporate Banking">Analyst 1 in IB - CB

Total Avg Compensation

March 2021 Investment Banking

  • Director/MD (9) $911
  • Vice President (31) $349
  • Associates (168) $231
  • 2nd Year Analyst (98) $151
  • Intern/Summer Associate (93) $145
  • 3rd+ Year Analyst (23) $145
  • 1st Year Analyst (371) $131
  • Intern/Summer Analyst (308) $82

Leaderboard See all

1
LonLonMilk's picture
LonLonMilk
98.5
2
Jamoldo's picture
Jamoldo
98.4
3
Secyh62's picture
Secyh62
98.3
4
CompBanker's picture
CompBanker
97.8
5
redever's picture
redever
97.7
6
Addinator's picture
Addinator
97.6
7
frgna's picture
frgna
97.6
8
bolo up's picture
bolo up
97.5
9
Edifice's picture
Edifice
97.5
10
NuckFuts's picture
NuckFuts
97.5