Exchange-Traded Funds (ETFs)
ETFs are investment companies that can be legally classified as either open-end companies or UITs.
- ETFs differ from traditional open-end companies and UITs because, by SEC orders, shares issued by ETFs trade on a secondary market and are only redeemable in very large blocks (for example, blocks of 50,000 shares).
- ETFs are not considered to be, nor are they permitted to call themselves, mutual funds.
The following articles contain useful information about ETFs, from the different varieties to choose from, to their benefits and how they are created:
Some types of companies that might initially appear to be investment companies may actually be excluded under federal law.
Private investment funds, sometimes called hedge funds, have no more than 100 investors or their investors all have a substantial amount of other investment assets. These funds are not considered investment companies, even though they issue securities and are primarily engaged in the business of investing in securities.
InvestingWant to invest but don't understand the difference between investment products? Here we explain ETFs vs. Mutual Funds and which is right for you.
Financial AdvisorExchange-traded funds are growing rapidly in popularity and may well overtake their traditional open-ended cousins at some point. Here's why.
Financial AdvisorLike any investment, ETFs come with some fine print. Here is what advisors should reveal to their clients about these hugely popular products.
Financial AdvisorIt's true that ETFs can offer tax efficiency, but that's not always the case. Here's what investors need to watch out for.
TaxesIt's true that ETFs can offer tax efficiency, but that's not always the case. Here's what investors need to watch out for.
InvestingUITs offer professional portfolio selection and a definitive investment objective. Are they right for you?
InvestingLearn about how ETFs can be a safe investment option if you know which funds to choose, including the basics of both indexed and leveraged ETFs.
InvestingAn open-end fund is a type of mutual fund that does not limit the amount of shares it issues, but issues as many shares as investors are willing to buy.