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Terms Dictionary

Funds

6 definitions in this topic

Exchange-Traded Fund (ETF)

A type of investment fund that holds a basket of assets and trades on stock exchanges like a single stock. ETFs often track an index, sector, or commodity.

Expense Ratio

The annual percentage of assets a fund charges to cover management and operating costs.

Hedge Fund

A pooled private fund using flexible strategies leverage, shorting, derivatives for a limited group of investors.

Index Fund

A mutual fund or ETF designed to track the components of a market index, such as the S&P 500. Index funds offer broad market exposure and low operating expenses.

Mutual Fund

An investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities, managed by a professional fund manager.

Net Asset Value (NAV)

The value per share of a mutual fund or ETF, calculated by subtracting liabilities from assets and dividing by the number of outstanding shares.