ETFs stand for exchange-traded funds. These are baskets of similar assets grouped under a single ticker symbol. For instance, a gold ETF usually only invests in gold and gold-related companies. Therefore, ETFs are usually pegged to the performance of an index or asset.

On Alchemy Markets, you can find ETFs in the Stock CFDs tab. We offer ETF trading with attractive leverage of up to 20:1 with tight spreads and no commission fees*, empowering your trades and buying power.

ETF stocks, specifically, refer to ETFs that primarily invest in stocks, aiming to replicate the performance of a particular index or sector of the market. For instance, a NASDAQ-based ETF invests in the Nasdaq Index itself and other related technology stocks.

By investing in an ETF stock, investors gain diversified exposure to a broad segment of the market or a specific industry with a single share.

Mutual Funds and ETFs are both baskets of assets which allow investors to easily diversify their accounts. The core difference between them is that Mutual Funds tend to be actively managed by fund managers, while ETFs are more passive, holding onto the initial investments for a longer period.

The most popular ETFs are SPY, IVV, VTI, QQQ and VEA, with over $100 billion invested in each of them. On Alchemy Markets, you can trade the derivative of the QQQ ETF with the ticker symbol of TQQQ (ProShares UltraPro QQQ).

An ETF is essentially an investment portfolio handled by a fund manager. When the assets in the ETF portfolio are rising, so does the ETF’s value. Traders can invest in an ETF to profit from its move to the upside or trade the ETF as a CFD to gain the ability to short-sell it.