Lingo every investor should know

Trade ya'
5 of 9

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."




Show Bankrate's community sharing policy
          Connect with us

CDs and Investment

Can heirs cash an old trust?

Dear Dr. Don, The youngest of 6 children, I am 48 years old. My father joined the Navy at 22. In Italy, he met his bride and my mother, and returned to the U.S. to raise our family. In 1959, he bought a trust certificate... Read more



Nick Mathews

What investors can learn from Cubs fans

What if, back in the day, Cubs and Indians fans celebrated smarter than me? What if they invested $100 in the Dow Jones industrial average in honor of a championship?  ... Read more

Connect with us