exchange-traded fund

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exchange-traded fund

(ETF), in finance, an investment company that in exchange for the deposit of a portfolio of stocks, bonds, commodities, or other assets issues securities that represent those assets and may be traded like shares of stock. Shares in an ETF may only be issued to the fund's authorized participants, typically large financial institutions, and usually in a large block of 10,000 to 50,000 shares, known as creation units. Shares in an ETF must also be redeemed in creation units. ETF shares may be purchased and traded by most individual investors using a brokerage account.

Most ETFs are similar to index funds (see mutual fundmutual fund,
in finance, investment company or trust that has a very fluid capital stock. It is unique in that at any time it can sell or redeem any of its outstanding shares at net asset value (i.e.
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) in that they represent a portfolio that is designed to track an index of a financial market, such as the S&P500. ETFs, however, track a greater range of indexes and thus offer more options and more specifically targeted choices for an investor. Unlike shares in a mutual fund, which may be redeemed only at the end of the business day when the net asset value is determined, ETF shares may be bought or sold at any time on an exchange and also may be sold short and purchased on margin, which is useful for traders. In general, compared to mutual funds, ETFs are more useful to the active trader with larger financial resources than to the long-term small investor. The first ETF was created in 1993 in the United States; the number of ETFs and amount of money invested in them grew significantly in the early 21st cent.

References in periodicals archive ?
ETFS can deliver compelling benefits to investors, but as with any investment tool, advisors should be discriminating in how they use them, cautions Tobias.
I'm sticking with [ETFS linked to] the more traditional, basic indexes because I think if you start in with the more exotic ETFS that use a lot of derivatives, the level of trust just is not very high.
First Federal Bank Texas, a federal savings bank based in Tyler, Texas and which is a wholly owned subsidiary of ETFS, was founded in 1923.
ETFS Crude Oil (CRUD), ETFS Brent 1mth (OILB) and ETFS Leveraged Crude Oil (CRUD) have consistently been in the top 10 traded ETCs/ETFs on the LSE over the past year.
ETFS Forward Crude Oil (FCRU) will be listed in the ETC segment of the London Stock Exchange.
Gold Physically Backed: ETFS Physical Asian Gold Shares (AGOL) are backed by LBMA gold bars that meet "good delivery"(1) standards.
ETN name: ETFS 3x Daily Short DAX 30, Asset class: equity index ETN, ISIN: DE000A1YKTK4, Total expense ratio: 0.
For more information please contact the US marketing agent, ETFS Marketing on 212-918-4954 or visit our website: www.
Commenting on the appointments, William Rhind, Head of Sales & Marketing, ETFS Marketing LLC:
is the marketing agent for The ETFS White Metals Basket Trust, ETFS Precious Metals Basket Trust, ETFS Gold Trust, ETFS Silver Trust, ETFS Platinum Trust and ETFS Palladium Trust.
Commenting on Friday's listing of the ETFS Physical White Metals Basket on NYSE ARCA, Fred Jheon, Head of Product and Business Development of ETFS Marketing LLC, said: