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(Share) What Is An ETF? Three Simple Answers

samedi 15 octobre 2016
An extraordinary number of retirement investors find themselves asking “What is an ETF?” Extraordinary because many of them are investors in these funds, whether they realize it or not.

An ETF is an “exchange-traded fund.” These types of investments have been around since 1993, but they started being used significantly about a decade later. Currently, the net assets held by ETFs amount to $1.34 trillion; that compares to $14.72 trillion in total assets held through investment companies, most of it in mutual funds.

To draw the distinction, let’s consider mutual funds, index funds and ETFs separately.

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(Share) What Is An ETF? Three Simple Answers

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