Term of the Day
Index
ETF refers to an
Exchange Trade Fund (ETFs) that follows a
benchmark index. ETFs are very much like mutual funds, they are baskets of stocks. The main difference between ETFs and
mutual funds is that ETFs can be traded at any time while the host
stock market is open and their prices reflect the
price changes throughout the day. The
mutual fund shares can only be redeemed at one price daily. Therefore ETFs are more flexible.