Definition
An exchange-traded fund pools assets under a stated strategy while its shares trade throughout the day on an exchange at market prices.
In market context
An ETF can track an index, hold an actively selected portfolio, or provide specialized exposure through securities or derivatives. Its trading price can differ from net asset value, and investors face expenses, bid-ask spreads, tracking differences, liquidity conditions, and the risks of underlying holdings. Leveraged, inverse, commodity, and crypto-related products may behave very differently from broad unleveraged funds and require closer review.
Source
Use the primary source for fuller regulatory or market context.
