ETF (exchange-traded fund)

ETFs and bonds

A fund that holds a basket of stocks or bonds and trades on the exchange like a single share.

How it is worked out

Its price follows the value of what it holds. Most of them track an index, such as the S&P 500.

How to read it

  • One purchase buys a piece of many companies, not of one.
  • Two ETFs with different names can hold almost the same stocks: that is what overlap shows.

Example

An S&P 500 ETF holds all 500 companies of the index, each at its weight.

Related terms

Related pages

The other pages on US stocks, free to read. On the company pages, the last three fiscal years are open to everyone, five with a free account, and every year with Ploutos Investor.

US stocksThe market today, the sectors, the largest companies and the week's results.The market's sectorsThe 11 sectors side by side: returns, share of the market, median P/E and dividend.Compare stocksTwo companies side by side: price over up to ten years, with and without dividends, and every figure.US dividend stocksEach dividend's yield next to whether the company's cash covers it and whether it was ever cut.

Explanations of terms for learning, with examples from SEC filings.