Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

Business / Technology


Our network sites seattletimes.com | Advanced

Originally published Sunday, February 4, 2007 at 12:00 AM

E-mail E-mail article      Print Print      Share Share

Exchange-traded funds (ETFs) give you the feel of a stock

An exchange-traded fund, or ETF, typically is built like an index mutual fund but trades like a stock. Where a traditional mutual fund can...

Syndicated columnist

An exchange-traded fund, or ETF, typically is built like an index mutual fund but trades like a stock.

Where a traditional mutual fund can be purchased or sold only at the daily closing price, an ETF can be bought or sold moment by moment.

Because it trades like a stock, it also can be purchased on margin or sold short (a way of betting against the market and profiting on a decline).

ETFs may offer some additional tax and cost benefits as well, although that is best determined on a case-by-case basis.

Financial-services firms have been developing ETFs at a fast clip, with many new products dedicated to thin or esoteric slices of the market, or new and unproven indexes.

It is expected that actively managed ETFs — more like a traditional, nonindex mutual fund — will also be available in the next couple of years.

E-mail E-mail article      Print Print      Share Share

More Business & Technology

UPDATE - 09:46 AM
Exxon Mobil wins ruling in Alaska oil spill case

UPDATE - 09:32 AM
Bank stocks push indexes higher; oil prices dip

UPDATE - 08:04 AM
Ford CEO Mulally gets $56.5M in stock award

UPDATE - 07:54 AM
Underwater mortgages rise as home prices fall

NEW - 09:43 AM
Warner Bros. to offer movie rentals on Facebook

More Business & Technology headlines...

advertising


Get home delivery today!

Video

Advertising

AP Video

Entertainment | Top Video | World | Offbeat Video | Sci-Tech

Marketplace

Advertising