Back to Glossary
General TradingI

Investment Funds

Pooled investment vehicles such as mutual funds, exchange-traded funds (ETFs), or index funds that allow multiple investors to collectively invest in a diversified portfolio of assets.

Example

For example, an investor who buys shares of the Vanguard S&P 500 ETF (VOO) gains instant diversified exposure to 500 large-cap U.S. stocks through a single investment fund.