A type of an exchange traded fund (ETF), specifically an equity ETF, that is designed to track a set of stocks, as a basket representing or belonging to a single industry or sector. For example, a stock ETF might track the financial or industrial sector in an economy, or even a foreign stock, etc.

A stock ETF might also be index-based (i.e., an index ETF). However, stock ETFs are categorized according to the types of investments held within the ETF, rather than by management type (passive or active- and hence, passive ETFs or active ETFs).

The sectors represented by stock ETFs may also include technology, telecommunications, clean energy and consumer goods. Certain ETFs provide exposure to international stocks, including regional, country-specific and sector-related ETFs.

In addition, there are stock ETFs that focus on size (large cap or small cap) or a investing style such as value or momentum.