← Glossary · Basics
ETF
An exchange-traded fund that usually tracks an index.
ETF stands for exchange-traded fund. Most ETFs track an index such as the MSCI World or the DAX, so a single purchase gives you a stake in many companies at once.
ETFs are a simple way to diversify, and their running costs are usually low because no fund manager picks stocks. The risk does not disappear: if the whole market falls, so does the ETF.