An ETF (Exchange-Traded Fund) is a fund that trades on the stock exchange like a single share — giving you a basket of investments (often a whole index) that you can buy and sell throughout the trading day.

ETFs combine the diversification of a fund with the easy trading of a stock. They often track an index like the KSE-100, usually at low cost. In Pakistan the ETF market is young but growing.

In Pakistan: a handful of ETFs trade on the PSX.

Example: buying one unit of a KSE-100 ETF gives you a slice of all 100 companies at once.

Don't confuse it with: a regular mutual fund, which is priced once a day at its NAV rather than traded live.

Related terms: Mutual fund · KSE-100 · PSX · Diversification Where you'll meet this: Mutual funds vs stocks