investing

Lingo every investor should know

Trade ya'
Next
5 of 9
Back

ETF is not shorthand to be used in a text message -- unless that text happens to be about investing. Rather, it's a benign term that stands for exchange-traded fund. An ETF represents an investment fund, and in that regard looks much like a mutual fund.

Unlike mutual funds, however, which compute a net asset value of their holdings at the end of each trading day, ETFs are bought and sold on stock exchanges throughout the trading day. Historically, most ETFs tracked an index, such as the Standard & Poor's 500, but today they can invest in other things as well. "You're seeing a lot more ETFs out there today," says Rimel. "The proliferation of ETFs is similar to what we saw with mutual funds 15 years ago."


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Move money to retirement account?

Dear Liz, Can I convert my regular investment account to a retirement account so that an investment made in that account is not taxed? If so, what type of retirement account can I choose? -- Jennifer Dear Jennifer, It's... Read more

advertisement

Blog

Sheyna Steiner

Cracks in China’s stock market wall

Stocks sold in mainland China are up over 80 percent since November. Revolutionary changes taking place in the Chinese market are the reason for the rally.  ... Read more

Partner Center
advertisement

Connect with us