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Definition of the Week: ETF
Investment Knowledge from stockbrokers.com
ETF
What is an ETF (Exchange-Traded Fund)?
An ETF is a security that tracks an index, or a basket of assets like an index fund does, but ETF’s trade like a stock. Since an ETF trades on the stock exchange it can be bought or sold at any point during the day. The price of an ETF will fluctuate throughout the day, unlike that of a mutual fund.
stockbrokers.com Explains ETFs:
ETF’s have been growing by leaps and bounds in popularity over the last few years. Why are they becoming so popular? ETF’s are far more tax-efficient than mutual funds, and they come with much lower expense ratios. The diversification of an index fund comes through the purchase of a single ETF, and it comes at a reduced price as well. ETF’s carry no minimum investment level, so they are accessible to all investors.
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[...] advantage. Clients can use their nifty ETF Screener to assist in developing an investment strategy. ETFs, or Exchange-Traded Funds, were covered in a 4 part special series here on stockbrokers.com [...]
[...] they will begin offering investors the opportunity for no cost to buy and sell 10 different ETFs (exchange traded funds). This will be a savings of $6.95 per trade or $13.90 for a round-trip. Stockbrokers.com recently [...]
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