ETF (exchange-traded fund)

ETF (exchange-traded fund)

Index funds investors can buy and sell like shares via the stock exchange

The abbreviation, ETF, stands for exchange-traded fund and refers to index trackers tradable on the stock exchange. The two main features of ETFs:

The composition of ETF portfolios is published on a daily basis. Thus, investors are provided with a continuous overview of the weighting of individual shares in the portfolio, which is based on the closing prices from the previous trading day.

Creation/redemption ETFs have a so-called creation and redemption mechanism, which allows professional market participants to exchange share baskets with the same composition for the ETF from the investment company.

On the Frankfurt Stock Exchange, ETFs are listed in the XTF® segment and can be traded continuously on Xetra® or in floor trading. There is no front-end load for investors.