Earnings Per Share (EPS) Definition

Learn the definition of earnings per share (EPS) 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 Earnings Per Share (EPS)

Earnings Per Share (EPS) within the ETF landscape serves as a crucial financial metric representing a company's profit allocated to each outstanding share of common stock. ETFs focusing on earnings-weighted indices prioritize companies with strong and growing earnings, aiming to capture the potential for sustained profitability and financial performance. Investors utilize EPS data to assess a company's overall profitability, growth trajectory, and its contribution to the earnings-weighted ETF portfolio. By integrating EPS considerations, these ETFs provide a systematic and quantitative approach to stock selection, aligning with the investment objectives of investors seeking exposure to companies with robust earnings fundamentals.

Related Terms

Exchange-Traded Fund (ETF), Stock Exchange

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.