Large-Cap ETF Definition

Learn the definition of large-cap ETF and other ETF terminology from the etf.com glossary.

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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

Learn more about Large-Cap ETF

A Large-Cap ETF specializes in channeling investments into large-capitalization stocks, which are generally considered to be those with market caps over $10 billion. Market capitalization is calculated by multiplying the total number of outstanding shares of a company by its current stock price. By concentrating on large, established entities, a large-cap ETF offers investors exposure to well-recognized, financially robust corporations within a singular investment vehicle. Beyond the potential for capital appreciation, large-cap ETFs provide a stable investment avenue, combining the advantages of diversification with the resilience associated with sizable, well-established companies. Investors seeking a balanced portfolio often turn to large-cap ETFs, appreciating their ability to navigate market fluctuations and deliver sustained, reliable performance within the realm of large-cap equities.

Related Terms

ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.