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Definition: ETF

(1) (Early Termination Fee) The monetary penalty for canceling a cellular subscription before the end of the contract. The common two-year cellphone contract subsidizes the cost of the phone; for example, a $600 smartphone may cost the subscriber $200. The remaining $400 is paid off during the mandatory term of the contract.

(2) (Exchange-Traded Fund) A type of investment that combines the features of a mutual fund and a share of stock. Like a mutual fund, an ETF is a group of stocks, commodities or bonds, but unlike a mutual fund, which trades at the end of the day, an ETF can be traded throughout the day like a stock.