Glossary of Option Terms: Exchange Traded Fund
Exchange Traded Fund (ETF)
Definition: A security that tracks a specific index and represents a basket of those stocks, behaves like an index fund but trades like a stock on any exchange; therefore it experiences price changes throughout the trading day as it is bought and sold.
The most well known ETF’s are the SPDR which tracks the S&P 500 and the QQQQ which tracks the Nasdaq 100.
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