Exchange-Traded Fund (ETF)

صندوق المؤشرات المتداول

An exchange-traded fund is an investment fund whose units are listed and traded on the exchange throughout the session, like a stock. Most ETFs passively track an index by holding its constituents in the same weights. ETFs listed on the Egyptian Exchange track benchmarks such as the EGX 30, giving exposure to the whole index in a single trade.

Example

An ETF tracking the EGX 30 holds the index constituents in their index weights, so its unit price moves with the index rather than with a manager's selections.

Why it matters

An ETF combines the diversification of a fund with the ability to trade during the session, and index-tracking versions typically cost less to run than funds that pick holdings.

A common mistake

Assuming any ETF is passive and cheap. The structure describes how it trades, not what it holds; the cost and the strategy are stated in its own documents and vary widely.

Related terms

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