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.
πŸ‘‡
πŸ‘‰ ETF (Exchange Traded Fund) β€” A basket of lots of companies you buy in one trade.
πŸ‘‰ Index β€” A list of companies the ETF follows instead of guessing winners.
πŸ‘‰ Diversification β€” Spreading money across many companies to lower risk.
πŸ‘‰ Dividend β€” Cash payments from companies you own through the ETF.
πŸ‘‰ Distribution β€” The income your ETF pays you (dividends + other earnings).
πŸ‘‰ Volatility β€” How much prices move up and down β€” the market’s mood swings.
πŸ‘‰ Market Cap β€” The size of a company based on total value.
πŸ‘‰ Management Fee β€” A small yearly cost to have the ETF managed.
πŸ‘‰ International ETF β€” Invests in companies outside Australia.
πŸ‘‰ Australian ETF β€” Invests mostly in Aussie companies.
πŸ‘‰ Rebalancing β€” When the ETF adjusts itself to stay on track.
πŸ‘‰ Ticker Code β€” The short code used to find an ETF on the market.
πŸ‘‰ NAV β€” The real value of everything inside the ETF.
πŸ‘‰ Passive Investing β€” Following the market instead of trying to outsmart it.
πŸ‘‰ Growth ETF β€” Focused more on long-term growth.
πŸ‘‰ Income ETF β€” Focused more on regular payouts.
πŸ‘‰ Asset Allocation β€” How you split money across investments.
πŸ‘‰ Risk Tolerance β€” How comfortable you are with ups and downs.
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Renee Koutsis
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ETF Jargon Cheat Sheet
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