Meaning of the word ETF in English

What does ETF mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

ETF

US /ˌiː.tiːˈef/
UK /ˌiː.tiːˈef/
"ETF" picture

Abbreviation

an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep its trading price close to its net asset value, although deviations can occur.

Example:
I invested in an ETF that tracks the S&P 500.
ETFs offer diversification and lower costs compared to traditional mutual funds.