Exchange Traded Fund (ETF)

A type of indirect investment, exchange-traded funds (ETFs) are professionally managed investment vehicles that contain pooled money from individual investors. ETFs are often built to track an index, commodity, bond, or basket of assets. Unlike mutual funds, ETFs trade like common stocks and may be bought and sold throughout the day on an exchange. Like mutual funds, owners of ETFs do not directly own the underlying securities in the fund, instead they own a share of the investment fund itself.

This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.