ETF Glossary

An exchange-traded fund that can be bought and sold like a stock.

A benchmark designed to represent the movement of a market or sector.

A reference index or portfolio used to compare investment performance.

Net asset value per share, calculated from the fund's assets minus liabilities.

The degree to which an ETF trades above or below its net asset value.

The annual percentage cost charged by the ETF for management and operations.

Dividend income expressed as a percentage of the ETF price.

Cash paid by an ETF to investors from dividends, interest, or other income.

The date on which buyers no longer qualify for the upcoming distribution.

The pattern of distributions increasing over time.

The process of bringing a portfolio back to its target allocation.

A strategy for dividing a portfolio across asset classes such as stocks, bonds, and cash.

The movement of actual portfolio weights away from target weights.

Investing a fixed amount at regular intervals.

Investing available capital all at once.

The difference between an ETF's return and the return of its benchmark.

How easily an ETF can be bought or sold near a fair price.

The difference between the best available buying and selling prices.

Assets under management, the total assets managed by the ETF.

The securities actually held inside an ETF.

How much of a portfolio is invested in a specific industry sector.

Risk from having too much exposure to one security, sector, or country.

A measure of how much an investment price fluctuates.

The percentage decline from a previous peak to a trough.

The degree of loss and volatility an investor can tolerate.

Return including both price change and dividends or distributions.

Tax withheld before dividends or interest are paid to investors.

An investment account where dividends and gains are taxed under standard rules.

A Korean individual savings account that can provide tax benefits within limits.

A retirement account that may provide tax deductions or tax deferral.

An ETF that invests in bonds such as government or corporate debt.

A measure of a bond ETF's sensitivity to interest-rate changes.

The risk that bond ETF prices move because interest rates change.

The risk that a bond issuer fails to pay interest or principal.

Lower-rated bonds or ETFs that offer higher yields for higher credit risk.

An ETF designed to deliver a multiple of the daily return of an index.

An ETF designed to rise when the underlying index falls.

A strategy that uses offsetting positions to reduce downside risk.

An ETF designed to reduce the impact of currency movements.

An ETF targeting investment factors such as value, quality, momentum, or size.

A factor focused on companies with strong profitability, balance sheets, and stability.

A rules-based strategy that weights holdings differently from traditional market-cap indexes.

A weighting method that gives each holding the same allocation.

An ETF that seeks income by holding equities and selling call options.

An ETF focused on a specific investment theme such as AI, electric vehicles, or semiconductors.