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Showing posts with the label expense ratio

Exchange traded funds

An exchange traded fund is an investment fund that comprises different securities and is traded on exchange much like a stock. This type of fund track stock or bond index like Standard&Poor's. Similarly like mutual funds ETFs have mixed portfolio consisting of various types of securities like stocks, bonds and commodities. Funds hold different underlying assets that are divided in shares with attached price which makes them marketable security that trades on exchange so its price can change during the trading day. Exchange  traded funds differ depending on their focus on different aspects of the market. Some funds have stock from hundreds and even thousands different industries while some other may focus on one particular industry  sector. In the same manner some are interested in exclusively on U.S. securities while others have more global approach. Some examples of ETFs are bond ETFs that include different types of bonds (government, corporate and...