An exchange-traded fund (ETF) is a security that tracks an index, commodity, or basket of assets that resembles an index fund but trades like a stock on an exchange.
 | | Exchange-Traded Fund (ETF) | | An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors. | | Breaking it Down: | | An ETF is a type of fund that owns the underlying assets (shares of stock, bonds, oil futures, gold bars, foreign currency, etc.) and divides... | | Read More » | | Related to "Exchange-Traded Fund (ETF)" | | | | No-Fee ETF | | A no-fee ETF is an exchange-traded fund (ETF) that a broker does not charge a commission or fee to be traded. | | Read More » | | | ETF Sponsor | | An ETF sponsor is a fund manager or financial company in charge of creating and administering an exchange-traded fund. | | Read More » | | | Redemption Mechanism | | A redemption mechanism is a method used by market makers of exchange traded funds to reconcile net asset value and market values. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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