Fundology

Glossary · Fund structure

ETF

Exchange-Traded Fund

A fund whose units trade on an exchange throughout the day like a share.

An ETF holds a portfolio in the same way as any other fund, but its units are bought and sold on an exchange rather than created directly with the manager. That gives intraday pricing and a bid-offer spread.

The market price can differ from the NAV. Authorised participants arbitrage large gaps away, but a spread and a small premium or discount remain part of the real cost of trading.

The same fund can be listed on several exchanges in different currencies under different tickers, all sharing one ISIN at share-class level. Matching an ISIN to the wrong listing produces the wrong price series.

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ETF (Exchange-Traded Fund) — what it means · Fundology