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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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2 Responses to “Glossary of Option Terms: Exchange Traded Fund”

  1. Three Monkeys on the Economy's back on February 19th, 2009 2:38 pm

    [...] I suggested two options if you wanted exposure to the gold market: the streetTracks Gold Shares ETF (NYSE: GLD) and the Market Vectors Gold ETF (AMEX: GDX). Since then, GDX has [...]

  2. Don't Fear "The Ides Of March"… Just Follow These Simple Anti-Recession Tips on February 20th, 2009 5:27 pm

    [...] Corner” feature, starting here next Monday. But it’s no surprise to see gold ETFs and many gold stocks hitting new highs at the moment. New highs are bullish and the gold market [...]