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.
On Fundology: All UK-listed funds and ETFs
Related terms
- NAVThe per-unit value of a fund’s assets after its liabilities, normally struck once per day.
- UCITSA European regulatory framework for retail funds, setting rules on diversification, liquidity and disclosure.
- ISINA 12-character global identifier for a specific security or fund share class.
- Share classA variant of the same fund with its own charges, currency or income treatment — and its own ISIN.
More terms on fund structure
Definitions describe how a term is used on Fundology. This is information, not advice.