Exchange Traded Fund

An exchange traded fund or otherwise known as ETF is a pooled investment security that operates like a mutual fund and trades on an exchange just like a stock does.

Typically, an ETF will track a particular index, sector, commodity, or other asset, but unlike mutual funds, an exchange traded fund will be purchased or sold on a stock exchange the same way that a regular stock can.

ETFs can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities.

Exchange traded funds can even be structured to track very specific investment strategies.

Share prices of ETFs fluctuate all day as they are bought, sold and provide fewer broker commissions than buying individual stocks.