Saturday, December 4, 2010

ETF

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
 
Comments?
If you disagree with the definition or have anything to add we'd love to hear from you. Please add your comments in the box below.

No comments:

Post a Comment