Curious Cat Investing Dictionary: Exchange Traded Funds (ETF)

Exchange Traded Fund - index funds that are traded on the exchange (rather than traded by buying and selling from the manager of the fund, which is the case with open end mutual funds).

Exchange Traded Funds trade during the day in contrast to open end mutual funds which only trade at the close of the business day.

  • Money Market Fund - mutual fund investing in short term debt securities (such as commercial paper and certificates of deposit). The fund price is maintained at $1 (which technically the fund may fail to do so in practice they have maintained that price - in rare instances that the fund holding actually fell below $1 the fund family provided funds to retain the $1 price). While they price may decline the experience so far shows it is possible but unlikely.
  • Closed end mutual fund
  • Hedge fund
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