An ETF (Exchange-Traded Fund) CFD is a financial derivative that allows investors to speculate on the price movement of a given ETF without actually owning the it. An ETF CFD works by tracking the price of the underlying ETF and enabling investors to trade on the difference between the open and close price. Investor does not own the ETF, but instead, they enter into a contract with the broker to pay or receive the difference in price based on the direction of their trade.