What is an equity ETF?

An equity ETF is an ETF that holds stocks. It can track a broad market index, focus on a sector, target a factor like value or momentum, or follow a dividend strategy.

Because it holds equities, it generally carries stock market risk. Broad equity ETFs can be a simple core holding, while sector or thematic equity ETFs can be more volatile.

If you're picking an equity ETF, focus on what it actually holds, how concentrated it is, and whether it overlaps heavily with other positions you already own. Those details often matter more than the ETF's name.