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