Investor Glossary-exchange traded fundInvestor Glossary-exchange traded fundInvestor Glossary-exchange traded fundInvestor Glossary-exchange traded fundInsightful 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

Exchange Traded Fund

The HTML to link to this page
 

An exchange traded fund (ETF) is a pool of stocks or commodities trading as a single stock on a stock exchange. Hence the name exchange traded fund. Unlike mutual funds, an exchange traded fund may be bought on margin, sold short, traded intraday, or in any other way traded like a stock. As with stocks, investing in an exchange traded fund will incur trading costs. Often, an exchange traded fund will mimic a stock index; popular exchange traded funds are the DIA (mimics the Dow Jones Industrial Index) and the QQQQ (mimics the NASDAQ 100). Other exchange traded funds can track specific industries, regions, or investing styles. Exchange traded fund family examples are iShares, VIPERs, and SPDRs. Exchange traded fund shares can be sold in the secondary market or large shareholders (i.e. institutions) can redeem for stock held by the fund itself, which can help investors in an exchange traded fund avoid capital-gains taxes.



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


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