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Equity (stock) ETFs

A simple way to own tiny slices of many companies at once, all in a single fund.

Many companies, one fund

What Equity (stock) ETFs are

An equity ETF is a fund that holds shares (also called stocks) in companies. A share is a small piece of ownership in a business. When you buy one unit of the ETF, your money is spread across all the companies the fund holds, instead of riding on just one.

Historically, equities have been the main long-term growth part of many people's portfolios, which is why many beginners start here. "Equity" and "stock" mean the same thing, so an equity ETF and a stock ETF are the same idea.

The trade-off is that share prices move up and down, sometimes a lot in a single year. Holding hundreds or thousands of companies in one fund softens the blow of any single company doing badly, but it does not remove the ups and downs of the market as a whole.

At a glance

Common indexes trackedMSCI World, S&P 500, FTSE All-World
Companies held~500 to ~3,000+, depending on the fund
Typical yearly fee (TER)~0.05% to ~0.65%
Defining traitOwns shares (part-ownership) in companies
Risk levelMedium to high; prices swing over time

Why beginners look here

Instant spread of holdings

One purchase can spread your money across hundreds or thousands of companies, so no single business decides your outcome.

Built for the long run

Equities have historically been the main long-term growth part of many portfolios, which is why beginners often start here.

Expect ups and downs

Share prices can fall sharply in some years, so equity ETFs suit money you can leave invested for a long time.

What to look for

Which index it tracks Check whether it follows a broad world index or a narrower one, since this decides how spread out your money is.
The ongoing fee (TER) This yearly cost is taken from the fund automatically, so a lower figure means less is quietly deducted over time.
Accumulating vs distributing Accumulating funds reinvest dividends for you, while distributing funds pay them out as cash; pick the one that fits your plan.
Fund size and age A larger, longer-running fund is often easier to buy and sell, though size alone does not tell you how it will perform.

Popular Equity (stock) ETFs

A few of the largest, pulled live from the screener — an example, not a recommendation.

See all Equity (stock) ETFs in the screener →

Good to know

Is an equity ETF the same as a stock ETF?

Yes. "Equity" is just another word for "stock," so the two names describe the same kind of fund holding company shares.

Do I receive dividends from an equity ETF?

Often yes. Companies may pay dividends (a share of profits), and the fund either pays them to you or reinvests them, depending on whether it is distributing or accumulating.

Can an equity ETF lose value?

Yes. Share prices rise and fall, so the fund's value can drop, sometimes noticeably in a single year, which is why a long time horizon helps.

Related topics

Finance Hamster provides educational information about ETFs and investing. It is not investment, tax, or legal advice, and not a recommendation to buy or sell any security. Markets carry risk; do your own research or consult a licensed adviser.