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 ?
In that vein, both Tobias and Johnston say that lately they have been using more Treasury ETFS, including funds linked to TIPS (treasury inflation protected securities) and one--to three-year Treasury bonds.
Both advisors say they are also eying the potential upside of ETFS tied to international markets because "I think some countries are going to come out of this [recession] earlier than we are" in the United States, reasons Johnston.
ETFS Forward Crude Oil (FCRU) will be listed in the ETC segment of the London Stock Exchange.
Assuming the transaction was consummated today and based on the average closing price of Prosperity's common stock determined pursuant to the merger agreement, ETFS stockholders would receive shares of Prosperity common stock with an aggregate market value of $22,440,060.
ETN name: ETFS 3x Daily Long DAX 30, Asset class: equity index ETN, ISIN: DE000A1YKTG2, Total expense ratio: 0.
Four new equity index ETNs issued by ETFS Equity Securities Limited have been tradable on Xetra since Monday.
NEW YORK -- ETF Securities USA LLC (ETFS) announced today that the newly launched ETFS Asian Gold Trust (AGOL) Exchange Traded Product (ETP) has gathered $50M in AUM.
Commenting on the appointments, William Rhind, Head of Sales & Marketing, ETFS Marketing LLC:
is the marketing agent for The ETFS Asian Gold Trust, ETFS White Metals Basket Trust, The ETFS Precious Metals Basket Trust, The ETFS Gold Trust, ETFS Silver Trust, ETFS Palladium Trust and ETFS Platinum Trust.
Commenting on this award for ETF Securities in the US, William Rhind, Head of Sales & Marketing for ETFS Marketing LLC, commented:
We are delighted to be back at the NYSE, ringing the opening bell for ETFS Asian Gold Trust and ETFS White Metals Basket Trust.
is now larger than its ETFS counterpart in Europe, which may reflect growing demand from U.