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 ?
The commencing date of the Exchange-traded bonds placement may be changed by the decision of the sole executive body of the Issuer subject to compliance with the requirements for the procedure of the information disclosure on the change of the Exchange-traded bonds placement commencing date, determined by the legislation of the Russian federation, the Decision on the issuance of securities and the Prospectus.
Designed to both meet the requirements of FAS 123 and incorporate the unique features that differentiate ESOs from exchange-traded options, this model explicitly accounts for such standard ESO features as early exercise, forfeiture and vesting requirements.
Exchange-traded funds take the indexing concept one step further by combining the best of three worlds -- mutual fund investing, index investing and individual stock ownership -- and throwing in a few extra perks.
ETC has developed strategic relationships with other ETF service providers to assist ETC's sub-advisors in navigating the exchange-traded fund launch process with the guidance necessary to maintain regulatory compliance.
Anticipated redemption (partial anticipated redemption) of the Exchange-traded bonds shall be executed against all Exchange-traded bonds at the Issuer's discretion.
Offering price has been set equal to 1000 roubles per exchange-traded bond.
Caption: PIMCO rings The Opening Bell(SM) simultaneously from its Newport Beach, CA Headquarters and the New York Stock Exchange (NYSE) to celebrate its launch of the PIMCO Total Return Exchange-Traded Fund (ETF).
The offers to execute the Preliminary agreements with the potential acquirers of the Exchange-traded bonds of the BO-10 series shall be submitted from July 16, 2015 at 10 AM Moscow time to July 16, 2015 at 4 PM Moscow time.
Exchange-traded AGBs will be quoted and transacted on ASX in a similar way to shares, with each bond quoted as a gross price (capital plus accrued interest) with a face value of $100.
Yorkville, an asset management firm that is a wholly owned subsidiary of Yorkville ETF Holdings, LLC, is built to meet the growth and demand for income-generating exchange-traded funds.
ETC's ETF-in-a-Box(TM) Solution is a turnkey platform that provides time-sensitive and cost-effective methods to bring an exchange-traded fund to market.
OKLAHOMA CITY -- Expanding its ETF-in-a-Box platform for investment managers and advisors, Exchange Traded Concepts (ETC) has filed requests for exemptive relief with the Securities & Exchange Commission to issue fixed income and actively managed exchange-traded funds.