A fund that tracks an index and has similarities to a mutual fund, but is traded on the exchange like a stock. It acts like a mutual fund in the way that ETF’s are designed to compare to the efficiency of an underlying bundle of assets and allow you to invest in these assets with one simple transaction. However, unlike a mutual fund, an ETF can be bought and sold on the market throughout the day like stocks, thus giving you more control over your investments. By owning an ETF, you have the ability to trade on margin, sell short and buy or sell using orders such as market, limit, stop, trailing stop and conditional. Since ETF’s track indexes, they have very low operating and transaction costs and are more tax-efficient than normal mutual funds.

Exchange Traded Funds can be found in the financial section of any newspaper under “American Stock Exchange Listed Stocks” and under “Exchange Traded Portfolios” in the Wall Street Journal. Investors can buy or sell exchange traded funds through one of our financial advisors just like a stock.

For more information on ETF’s and how they can fit into your portfolio, please contact your financial advisor or contact us at contact@equinoxsecurities.net.

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