An ETF is an exchange traded fund: a mutual fund that’s traded like a stock. When you want to buy or sell an ETF you can do so in real time; you don’t have to wait until the end of the day as with a mutual fund. ETFs vary in their investments. Some ETFs match a stock index such as the S&P 500; other ETFs specialize in energy companies or companies from a specific country such as Italy. As with mutual funds, ETFs charge a management fee. And whenever you buy or sell an ETF you’ll have to pay commission as you would with a stock transaction.
Exchange-traded funds (ETFs) are mutual funds that are traded like stocks. ETFs run the gamut from general funds based on indexes to highly specialized ETFs, such as those that focus on narrow slices of medicine. If you are familiar with investing and want to learn more about ETF funds and ETF portfolios, read "iMoney: Profitable ETF Strategies for Every Investor."
As with any investment, exchange-traded funds come with some risk. Can ETFs help you get rich quick? How risky are ETFs? What can you do to mitigate risk when investing in ETFs? John Wasik, coauthor of "iMoney: Profitable ETF Strategies for Every Investor," shares his insights on ETFs and risk.
Can investing in exchange-traded funds, or ETFs, help you with taxes? ETFs are often based on a stock or another index and so are not actively managed. With passive management, an ETF has less trading activity, so there are fewer taxable events. ETF investors benefit from this approach because they may pay fewer taxes.
Exchange-traded funds, or ETFs, are among the newer investment options. ETF investing is useful for diversifying your portfolio, according to John Wasik, coauthor of "iMoney: Profitable ETF Strategies for Every Investor." You can buy ETFs that are index funds, bond funds or sector funds. Wasik recommends some ETFs for the beginning ETF investor.
What are ETFs? ETFs are exchange traded funds - mutual funds that trade like stocks. Learn about some of the different types of ETFs and how their fees and commissions work.