What is an exchange traded fund (ETF)?

An exchange traded fund, or ETF, is a basket of investments like stocks or bonds. Exchange traded funds let you invest in lots of securities all at once, and ETFs often have lower fees than other types of funds. ETFs are traded more easily too. But like any financial product, ETFs aren’t a one-size-fits-all solution.

What are ETFs & how do they work?

Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities.

What is a fidelity ETF?

Fidelity An exchange-traded fund (ETF) is a basket of securities you buy or sell through a brokerage firm on a stock exchange. 2,955 U.S.-listed ETFs/ETPs with assets of $6.64 trillion is the data as of 5/31/22.

Do you own a portion of an ETF?

Shareholders own a portion of an ETF, but they don’t own the underlying assets in the fund. Even so, investors in an ETF that tracks a stock index may get lump dividend payments, or reinvestments, for the stocks that make up the index. (Related: Learn how to invest in index funds, or compare index funds and ETFs.)