Earnings Per Share (EPS) Definition

Jan 08, 2024

Reviewed by: etf.com Staff

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.

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 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.

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