Transparency Definition

Learn the definition of transparency and other ETF terminology from the etf.com glossary.

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

Learn more about Transparency

Transparency is a cornerstone of ETFs, emphasizing the disclosure of the fund's holdings and investment strategy. ETFs, by design, provide daily portfolio transparency, allowing investors to scrutinize the fund's composition and make well-informed decisions. This transparency builds trust and confidence among investors, who appreciate the ability to assess underlying assets, sector exposures and risk factors. The open-book nature of ETFs aligns with the preferences of investors seeking clarity in their investment choices, fostering an environment where market participants can confidently navigate the complexities of the financial landscape with transparency as a guiding principle.

Related Terms

Exchange-Traded Fund

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.