Exchange Traded Funds


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Exchange Traded Funds (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.

Exchange-Traded Fund

A security that represents all the stocks on a given exchange. For example, an exchange-traded fund may track the Standard and Poor's 500. The organization issuing the exchange-trade fund owns each of the stocks traded on the S&P 500 in approximate ratio to their market capitalization. ETF shares can be bought, sold, short-sold, traded on margin, and generally function as if they were stocks. Investors use exchange-traded funds as a way to easily diversify their portfolios at relatively low cost. See also: SPDR.
References in periodicals archive ?
Osama Rashad, Director of Investor Relations at Belton Financial stated on Wednesday that, "Beltone is still interested in the release of exchange traded funds, and we continue to hold meetings with the EFSA to pursue this end.
The Guerite Absolute Return Fund utilizes a two-part investment strategy that seeks to grow capital by investing in exchange traded funds and holding undervalued stocks until they reflect full value, in combination with its proprietary Guerite Indicator identification system that seeks to identify high-risk conditions and protect capital against undue risk.
BGI manages 65% of the world's 100 largest pension plans3 and is the global leader in assets and products in the exchange traded funds through its iShares([R]) brand with more than 180 ETFs.
NYSE: EEE) which joined as the first transfer from American Stock Exchange; and 15 exchange traded funds (ETFs) listed on NYSE Arca in October when Barclays Global Investors (BGI), a worldwide leader in ETFs, transferred the listings of its iShares ETFs from the AMEX.
The American Stock Exchange([R]) (Amex([R])) offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRS(SM).
The American Stock Exchange (Amex) offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRS.