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. What are the risks involved in keeping my money in a money market account?

    Setting aside funds in a money market account can be a safe investment strategy, but investors should be aware of the risks ...
  2. Does it make sense for me to have a money market account if I don't want to buy any ...

    Saving funds within a money market account or mutual fund does not have to be limited to those wanting to buy or sell securities ...
  3. How much of my total assets should I be keeping in my money market account?

    Investing a portion of total assets in a cash position such as a money market account provides investors access to funds ...
  4. Why would you keep funds in a money market account and not a savings account?

    Read about the differences between money market accounts and savings accounts, and see why a depositor would elect a money ...
RELATED TERMS
  1. Historic Pricing

    A method for calculating the value of an asset using the last ...
  2. Bear Fund

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

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

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

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

    A ratio developed by Nobel laureate William F. Sharpe to measure ...

You May Also Like

Related Articles
  1. Stock Analysis

    Why This Bond Fund Should Be in Your ...

  2. Stock Analysis

    Is PIMCO's Commodity Strategy (PCRDX) ...

  3. Stock Analysis

    Time to Look at PIMCO's Total Return ...

  4. Economics

    Gary Gordon Positions Your Portfolio ...

  5. Professionals

    A Look At Pimco's Total Return Fund ...

Trading Center