ETFs

How Is An ETF Similar To A Closed End Fund?

Jim moved on to exchange-traded funds after learning about closed-end funds. Closed-end funds are extremely similar to exchange-traded funds, or ETFS. ETFs are stock exchange-traded funds that trade intraday on the stock exchange and are essentially static baskets of stocks. Due to arbitrage, ETFs trade relatively close to their NAV throughout the day. Arbitrage traders […]

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How Is An ETF Structured?

Exchange-traded funds (ETFs) differ from mutual funds in terms of their structure. ETFs are legally classified as exchange-traded open-end mutual funds, exchange-traded unit investment trusts, and exchange-traded grantor trusts, among other things. The distinctions are minor. One of the most important differences between ETFs and mutual funds is that ETF shares, which represent stock ownership,

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