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

          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

Suffering from annuity anxiety?

Dear Dr. Don, Is it wise to invest $10,000 in a fixed annuity at a rate of 8 percent for a 10-year period? With this fixed annuity, the money cannot be taken out until after the 10-year time frame is up. Please let me know... Read more

advertisement

Blog

Dr Don Taylor

Daily market volatility? No big deal

When investors own a dividend-paying stock, they receive the dividend payments over time but don't realize any capital gain yield on the stock until the position is sold.  ... Read more

Partner Center
advertisement

Connect with us