Need a hand?

An exchange-traded fund (ETF) is an investment that holds securities, like bonds, commodities, stocks, and that trades on a stock exchange. ETFs can be bought and sold like stocks and offer exposure to various asset classes.

Benefits for investors may include diversification, flexibility, and lower cost. To learn more about ETF benefits, read this FAQ in our Help Centre.

The ETF market price is the price at which ETF shares are bought or sold on an exchange during trading hours. It fluctuates throughout the day based on supply and demand. Investors can trade ETF shares through brokers or trading platforms, similar to individual stocks.

The bid-ask spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask).

ETFs may be used to:

• Track a specific index, such as the S&P 500
• Follow a particular investment strategy, such as investing in renewable energy or technology companies
• Be structured to track anything from the price of an individual commodity, to a large and diverse collection of securities
• Be actively managed, meaning that the fund's portfolio is selected and maintained by a professional fund manager