Earnings Per Share (EPS) Definition
Learn the definition of earnings per share (EPS) and other ETF terminology from the etf.com glossary.
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.
