Saturday, December 4, 2010


ETF: An ETF, or Exchange Traded Fund is a fund that is unitized and listed on a public exchange. An ETF is basically a publicly traded mutual fund, over time a wide range of ETFs have been developed on a wide range of asset classes, sectors, indexes. The ETF sector originally grew out of passive index tracking funds (which held a basket of stocks that replicated the returns of a targeted index), thus the ETF vehicle has traditionally been seen as a low cost/low fee fund type. The benefits of investing via an ETF includes the greater liquidity levels afforded by being publicly traded.

Synonyms: Exchange traded fund, Exchange traded note, Listed fund, Listed investment company
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