ETFs

Is An ETF A Registered Investment Company?

Regulatory framework. Most ETFs are registered as investment firms with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940, and the public shares they issue are registered under the Securities Act of 1933. Although their publicly-offered shares are registered under the Securities Act, several ETFs that invest in commodities, currencies, or

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Is An ETF A RIC?

Yes, in a nutshell. Under the Investment Company Act of 1940, most ETFs (Exchange Traded Funds) are registered as investment firms with the Securities and Exchange Commission (SEC). As a result, they are classified as RICs (Registered Investment Companies) for legal and tax purposes, exactly like regular open-end mutual funds. Almost all ETFs fall within

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Is An ETF A Security?

In a nutshell, an ETF is a collection of securities that you can purchase or sell on a stock exchange through a brokerage firm. ETFs are available in almost every asset class imaginable, from standard investments to so-called alternative assets such as commodities and currencies. Do ETFs qualify as securities? An ETF is a collection

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Is An ETF A Bond?

No. ETFs are a type of mutual fund that invests in a variety of securities. Bond ETFs track the prices of the bond portfolio they represent, and investors can buy and sell them on exchanges much like stocks. Are bonds and exchange-traded funds the same thing? Bond funds and bond ETFs (exchange-traded funds) are both

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