Variable Annuity Definition

Learn the definition of variable annuity 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 Variable Annuity

While not an ETF, a Variable Annuity integrates investment options, including ETFs, within an insurance product framework. This financial instrument offers a dual benefit, providing a stream of income in retirement while allowing investors to participate in the market through the inclusion of ETFs in sub-accounts. Variable Annuities grant investors flexibility, allowing them to balance growth potential with the security of annuitization. By leveraging the investment capabilities of ETFs within a variable annuity, investors can tailor their portfolios to align with individual risk tolerances, financial goals, and the desire for a reliable income stream during retirement.

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.