Exchange traded funds (ETFs) are index funds or trusts that are listed on an exchange and can be traded in a similar fashion as a single equity. The first ETF came about in 1993 with the AMEX's concept of a tradable basket of stocks -- the Standard & Poor's Depositary Receipt (SPDR). Today, the number of ETFs that trade options continues to grow and diversify. Investors can buy or sell shares in the collective performance of an entire stock portfolio - or a bond portfolio -- as a single security. Exchange traded funds allow some of the more favorable features of stock trading, such as liquidity and ease of equity style features to more traditional index investing.
Are funds that track an index but can be traded like a security. SPDR (Spiders), which tracks the S&P 500 index, is the first ETF.
Also known as ETF. A basket of stocks similar to an index mutual fund. However, there are a number of important differences between ETFs and mutual funds. The ETF can be traded within the day, they can be shorted, purchased on margin and there even exists options on some ETFs.
A fund that tracks an index but that can be bought and sold via a broker. IShares are the most common form of ETF found in the UK.
Ownership in an investment fund or trust that owns underlying assets, such as stocks and bonds. ETFs invest in broad market indexes or sub-indexes for industry sectors and countries. Fiscal Year A company's accounting or financial reporting year. Our fiscal year commences April 1 and ends March 31.
ETFs (Exchange Traded Funds) also known as IPUs (Index Participation Units) are open-ended mutual funds, the units of which are listed and traded on a stock exchange.
EFTs) EFTs are index funds or trusts that are listed on an exchange and can be traded intraday. Investors can buy or sell shares in the collective performance of an entire stock or bond portfolio as a single security. Exchange traded funds add the flexibility, ease and liquidity of stock trading to the benefits of traditional index fund investing. EFTs are not included in the Mutual Fund edition of our newsletter, but will be included in a publication designed for more advanced investors.
A fund that tracks an index (equaling low operating and transaction costs) but that can be traded like a stock, on exchanges. ETF's can be traded at any time throughout the day, offering the benefits of a conventional index related fund with those of listed shares. ETF's can be traded more quickly than normal investment trusts with no sales loads or investment minimums required at point of purchase. Investors acquire in a single transaction, a holding that represents all the constituent issues of a specific index enabling easy diversification of portfolios.
Exchange Traded Funds (ETFs) represent shares of ownership in either fund, unit investment trusts, or depository receipts that hold portfolios of common stocks which closely track the performance and dividend yield of specific index, either broad market, sector or international. ETFs give investors the opportunity to buy or sell an entire portfolio of stocks in a single security, as easily as buying or selling a share of stock. They offer a wide range of investment opportunities. While similar to an index mutual fund, ETFs differ from mutual funds in significant ways. Unlike Index mutual funds, ETFs are priced and can be bought and sold throughout the trading day.
A fund that tracks an index, but can be traded like a stock. The most well-known ETF is the SPDR, which tracks the Standard & Poor's 500 index.
Exchange traded funds are collective investment vehicles which track indices - they can allow low cost exposure to the performance of an index as quickly and efficiently as the most liquid stocks.