ETFs

Traded fund shares

ETFs, or exchange-traded funds, are investment funds that trade on stock exchanges like individual stocks.

They typically track an index, sector, commodity, or other asset, offering diversification without buying each component separately: She put her savings into low-cost ETFs.

Unlike mutual funds, ETFs can be bought and sold throughout the trading day at market prices.

markets

stock market

Securities trading venue

commodities · S&P 500 · NASDAQ · Dow Jones · volatility · bull market · bear market · correction · capitalization · blue-chip

investing

diversification

Expanding into varied areas

tax efficiency · capital gains · retirement savings · financial planning · risk management · growth strategy · dollar-cost averaging · lump sum · long-term · compound growth

trading

exchange-traded

Traded on formal markets

volume · market order · limit order · broker · commission · premium · discount · arbitrage · short-selling · margin

structure

fund manager

Oversees pooled investment assets

shareholder · fiduciary · accumulation · redemption · custodian

income

dividends

Profits paid to shareholders

high-yield · monthly income · income stream

Categories
Opposites
investment diversification

ETFsstock picking

Choosing specific shares to purchase

active management · penny stocks · day trading · value investing

trading structure

ETFsmutual funds

Collectively managed securities portfolios

private equity · hedge funds · real estate · limited partnerships

Family

funds, refund, defund

Familiarity
Top 500,000
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Timeless · Abstract · Rated G