Feb 22 • General discussion
ETF Jargon Cheat Sheet
Here’s a super simple cheat sheet to help you understand common ETF words without the overwhelm. There's also a graphic you can save and download.
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👉 ETF (Exchange Traded Fund) — A basket of lots of companies you buy in one trade.
👉 Index — A list of companies the ETF follows instead of guessing winners.
👉 Diversification — Spreading money across many companies to lower risk.
👉 Dividend — Cash payments from companies you own through the ETF.
👉 Distribution — The income your ETF pays you (dividends + other earnings).
👉 Volatility — How much prices move up and down — the market’s mood swings.
👉 Market Cap — The size of a company based on total value.
👉 Management Fee — A small yearly cost to have the ETF managed.
👉 International ETF — Invests in companies outside Australia.
👉 Australian ETF — Invests mostly in Aussie companies.
👉 Rebalancing — When the ETF adjusts itself to stay on track.
👉 Ticker Code — The short code used to find an ETF on the market.
👉 NAV — The real value of everything inside the ETF.
👉 Passive Investing — Following the market instead of trying to outsmart it.
👉 Growth ETF — Focused more on long-term growth.
👉 Income ETF — Focused more on regular payouts.
👉 Asset Allocation — How you split money across investments.
👉 Risk Tolerance — How comfortable you are with ups and downs.
✨ Save this post so you can come back anytime you see confusing ETF words!
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ETF Jargon Cheat Sheet
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