Exchange Traded Funds
An Exchange-Traded Fund (ETF) is much like a mutual fund but trades like a stock. Unlike a mutual fund, which has its net-asset value calculated at the end of each trading day, an ETF’s price changes throughout the day, fluctuating with supply and demand. ETFs tend to be passively managed, which can generally result in tax efficiency for investors and savings on management fees. ETFs can offer diversification as many are designed and managed to track different types of broad financial indices.