Exchange-Traded Fund - ETF

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Dictionary Says

Definition of 'Exchange-Traded Fund - ETF'

A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold. 
Investopedia Says

Investopedia explains 'Exchange-Traded Fund - ETF'

Because it trades like a stock, an ETF does not have its net asset value (NAV) calculated every day like a mutual fund does.

By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you'd pay on any regular order.

One of the most widely known ETFs is called the Spider (SPDR), which tracks the S&P 500 index and trades under the symbol SPY.

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'Exchange-Traded Fund (ETF)'

  • Exchange-Traded Funds: Introduction | Investopedia

    http://www.investopedia.com/university/exchange-traded-fund/
    ... by Ken Hawkins (Contact Author | Biography) Exchange-traded funds (ETFs ... exchange
    and looks like a mutual fund. ... an underlying index, which the ETF is designed to ...

  • Exchange-Traded Funds: Introduction | Investopedia

    http://www.investopedia.com/university/exchange-traded-fund
    ... by Ken Hawkins (Contact Author | Biography) Exchange-traded funds (ETFs ... exchange
    and looks like a mutual fund. ... an underlying index, which the ETF is designed to ...

  • Exchange-Traded Funds: ETF Alternative Investments | Investopedia

    http://www.investopedia.com/university/exchange-traded-fund/etf8.asp
    ... PowerShares DB Commodity Index Tracking Fund ETF (PSE:DBC). Inverse ETFs and ... ProShares
    UltraShort S&P500 ETF (AMEX:SDS). Next: Exchange-Traded Funds: ETF ...

  • Exchange-Traded Funds: ETF Investment Strategies | Investopedia

    http://www.investopedia.com/university/exchange-traded-fund/etf9.asp
    ... buying an ETF that is very similar to the fund or stock ... has no expertise in emerging
    markets can buy an ETF based on an ... Next: Exchange-Traded Funds: Conclusion ...

  • Exchange-Traded Funds: SPDR S&P 500 ETF | Investopedia

    http://www.investopedia.com/university/exchange-traded-fund/etf3.asp
    ... An active trader could also use this ETF to actively trade ... Exchange-Traded Funds
    (ETFs). This vehicle combines the diversification of a mutual fund with the ...

  • Exchange-Traded Funds: Introduction | Investopedia

    http://www.investopedia.com/university/exchange-traded-fund/default.asp
    ... by Ken Hawkins (Contact Author | Biography) Exchange-traded funds (ETFs ... exchange
    and looks like a mutual fund. ... an underlying index, which the ETF is designed to ...

  • Exchange-Traded Funds: Features | Investopedia

    http://www.investopedia.com/university/exchange-traded-fund/etf2.asp
    ... twice a year, when you buy into a mutual fund, what you're ... (For more insight, read
    Dissecting Leveraged ETF Returns.). Next: Exchange-Traded Funds: SPDR ...

  • Exchange-Traded Funds: Equity ETFs | Investopedia

    http://www.investopedia.com/university/exchange-traded-fund/etf6.asp
    ... Or Sparkling Gift?) One issue with using a quantitative ETF is that ... First Trust Large
    Cap Core AlphaDEX Fund (AMEX:FEX). Next: Exchange-Traded Funds: Fixed ...

  • The Benefits Of ETF Investing

    http://www.investopedia.com/articles/mutualfund/05/060605.asp
    ... It was State Street Global Advisors that launched the first exchange-traded
    fund (ETF) in 1993 with the introduction of the SPDR. ...

  • Exchange-Traded Funds: Fixed-Income and Asset-Allocation ETFs ...

    http://www.investopedia.com/university/exchange-traded-fund/etf7.asp
    ... by Ken Hawkins (Contact Author | Biography) Although the first exchange-traded funds
    (ETFs) were developed ... In a stock ETF, the fund is generally composed ...

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