##  [# Beta Definition](/sections/beta-definition) 

 

# Beta Definition

 

 

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



 

 

 

 

 [![ETF](/sites/default/files/styles/author_image_icon/public/2023-12/ETFGlossary_400x400_0.png?itok=HW0ov3q8)](/authors/etf-glossary) 

[By ETF Glossary](/authors/etf-glossary)

 Dec 04, 2023

 Edited by: ETF.com Staff

 

 

 [ + Follow ](/etf/login) 

     Share  <a class="a2a a2a_button_email"> Email </a><a class="a2a a2a_button_linkedin"> LinkedIn </a><a class="a2a a2a_button_facebook"> Facebook </a><a class="a2a a2a_button_x"> X (Twitter) </a> 

 

 

 

 

 

 

 

 

  
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-article_page_302x26');
            });
    
    

 

 

  

 



 

 

  Loading 

 

 



 

 

## Learn more about Beta

Beta is a measure of an ETF's volatility relative to the broader market. It represents the sensitivity of an ETF's price movements compared to changes in the overall market index, such as the S&amp;P 500. A beta of 1 indicates that the ETF moves in line with the market, while a beta greater than 1 suggests the ETF is more volatile than the market, and a beta less than 1 implies the ETF is less volatile than the market. Investors often use beta to assess the risk associated with a particular ETF.

### Related Terms

[Alpha](/etf-education-center/etf-glossary/alpha), [Smart Beta ETF](/etf-education-center/etf-glossary/smart-beta-etf), [Index](/etf-education-center/etf-glossary/index)

 
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-in_article_unit');
            });
    
    

 

 



 

 

 [ + Follow ](/etf/login) 

 [ ETF Glossary ](/authors/etf-glossary) 

 

 

  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…   [View Bio](/authors/etf-glossary)

 



 

 


 Related Topics