Investor Glossary-etfInvestor Glossary-etfInvestor Glossary-etfInvestor Glossary-etfInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

ETF

The HTML to link to this page
 

ETF stands for Exchange Traded Fund. An ETF is registered with the SEC as an investment company, and it shares trade on a stock exchange intraday like any other public company. The ETF is like a mutual fund, however, in that its assets consist of a basket of stocks deposited by institutional investors. The American Stock Exchange launched the first ETF in 1993. That ETF was called a SPDR, and it tracked the S&P 500. Today, the most common security portfolio for a domestically traded ETF remains a broad-based equity index, although an ETF may instead track a specific sector. The global or international ETF also exists; this variant usually tracks a particular foreign national or regional index. ETF shares can be sold short or bought on margin. The ETF also has a slight tax advantage over a mutual fund. Nevertheless, commissions paid to buy and sell ETF shares tend to make the mutual fund a more attractive investment than the ETF for many investors.



Rate this ETF definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use