Concept

ETF (exchange-traded fund)

A fund that holds a basket of investments, like stocks or bonds, and trades on an exchange like a single stock. One share gives you a slice of everything the fund owns.

Why we track it

Many prices we show come from ETFs, because a fund like SPY or XLK is a simple, tradable stand-in for a whole index or sector.

Asset allocationHow a portfolio is split among kinds of investments, such as stocks, bonds and cash.
BacktestingTesting an investing rule on historical data to see how it would have performed before putting money behind it.
Basis pointOne hundredth of a percentage point (0.01%), often written bp.
Bear marketA fall of roughly 20% or more from a recent peak, usually over several months.
Bull marketA long stretch of rising prices across a market, often dated from a 20% rise off a low.
Business cycle stagesThe economy’s long rise and fall: years of growth, a slowdown, sometimes a recession, then recovery.

Why we track it

Related terms