A type of ETF (exchange-traded fund) that is set up to invest in equity securities in a manner replicating a certain underlying index. Being a type of index ETF, an equity ETF is an index-based passive investment vehicle that is designed to follow the performance of an equity index (as closely as possible or in the same proportion).
This ETF allows investors to indirectly or passively invest in equity (stocks or share in equity funds, etc.)
Given the diverse realm of equity securities and investments, an equity ETF may take many forms including large cap equity ETFs, small cap equity ETFs, private equity ETFs, international equity EFTs, and so on (see: types of equity ETF).
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