Why do all mutual fund tickers have an X at the end?

By Chad Langager AAA
A:

It's true that all mutual funds' tickers have an X at the end of their symbol. The reason for this is to distinguish between mutual fund tickers and other securities that also have ticker symbols (such as stocks and bonds). This way you will automatically recognize a mutual fund by the X at the end of its ticker.

Another example of this is a money market fund, which will be followed by two Xs.

Another reason behind the extra letter is that it allows for more ticker possibilities. If all securities in the market were restricted to a four-symbol ticker it would limit the overall number of possible combinations of tickers. By adding a classifying letter to a ticker symbol, such as an X, you greatly increase the number of possible tickers and available choices of tickers.

There are other characteristics among tickers that may be of interest. Stocks that trade on the NYSE will have three or less symbols and never more than that. However, tickers on the Nasdaq have four letters.

To read more on this subject, see Understanding The Ticker Tape or the frequently asked questions, What do all of the letters in a stock option ticker symbol mean? and My stock's ticker symbol recently changed, why is this?

RELATED FAQS

  1. Is it a good idea to buy mutual funds from banks?

    Mutual funds offer consumers a great way to access a professionally-managed group of assets at a relatively low cost, with ...
  2. What do the different types of mutual fund classes mean?

    When checking for different quotes on mutual funds, you might see different prices for classes of mutual fund shares that ...
  3. Do ETFs have a board of directors?

    Yes. An exchange-traded fund (ETF) is a type of security that tracks a basket of assets or an index (such as an index fund), ...
  4. What advantages do exchange-traded funds have over mutual funds?

    Exchange-Traded Funds (ETFs) are growing ever more popular, as they were created to combine the best characteristics of both ...
RELATED TERMS
  1. Bear Fund

    A mutual fund designed to provide higher returns when the market ...
  2. Ulcer Index - UI

    An indicator developed by Peter G. Martin and Byron B. McCann ...
  3. Investment Company Act Of 1940

    Created in 1940 through an act of Congress, this piece of legislation ...
  4. Product Portfolio

    Investopedia explains: A Product Portfolio is the collection ...
  5. Sharpe Ratio

    A ratio developed by Nobel laureate William F. Sharpe to measure ...
  6. Target-Date Fund

    A mutual fund in the hybrid category that automatically resets ...
comments powered by Disqus
Related Articles
  1. Cut Your Tax Bill With Donor-Advised ...
    Taxes

    Cut Your Tax Bill With Donor-Advised ...

  2. Can High Fund Returns Be Deceiving?
    Mutual Funds & ETFs

    Can High Fund Returns Be Deceiving?

  3. An Introduction To Target Date Funds
    Retirement

    An Introduction To Target Date Funds

  4. What Will Become of Berkshire Hathaway ...
    Investing News

    What Will Become of Berkshire Hathaway ...

  5. Are Mutual Funds Doomed?
    Mutual Funds & ETFs

    Are Mutual Funds Doomed?

Trading Center