An ETF is an investment fund that’s available to buy on the stock exchange. Learn what it is and how it works on this beginner-friendly definition page.
'VOO and Chill': Is the S&P 500 Enough? Managing risk through asset allocation instead has its advantages, especially for older investors nearing retirement. Kate StalterMay 9, 2025 7 Best Money Market Funds to Buy Investors can continue to enjoy low-risk, attractive yields with these top m...
What is an ETF? An ETF is a tradeable fund, containing many investments, generally organized around a strategy, theme, or exposure. That approach could be tracking a sector of the stock market, like technology or energy; investing in a specific type of bond, like high-yield or municipal;...
For instance, many mutual funds compare their returns to the return in the S&P 500 Index to give investors a sense of how much more or less the managers are earning on their money than they would make in an index fund. "Indexing" is a form of passive fund management. Instead of a f...
It could be one target-date fund, if you really want to keep it bare bones, though even that approach is not without risk. An example of a Morningstar-recommended minimalist fund portfolio includes Vanguard Total Stock Market (VTI), Vanguard Total International Stock Index (VTIAX) and ...
The primary advantage index funds have over their actively managed peers is lower fees. So, if actively managed funds don’t outperform their passive peers, more investors are asking, Why are we paying fund managers so much more in fees each year? Using SPIVA data as a proxy, which compares...
Definition and meaning AMutual Fundis an entity that brings together the money from several investors and invests the pooled funds. It invests those funds in securities such as bonds, stocks, and short-term debt. Some mutual funds pool money from hundreds of thousands of investors. We call th...
What Is an IPO? Definition and How IPOs Work An IPO, or initial public offering, is when a company becomes publicly-owned and investors can purchase its stock.Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actio...
Net asset value, or NAV, represents the value of an investment fund and is calculated by adding the total value of the fund’s assets and subtracting its liabilities. Mutual funds and ETFs use NAV to calculate the price per share of the fund. What is NAV and how does it work? The ...
What Are Exchange-Traded Notes (ETNs), and How Do They Work? Exchange Traded Notes: An Alternative to ETFs Exchange Traded Product (ETP): Definition, Types, and Example Index Fund vs. ETF: What's the Difference? CURRENT ARTICLE ETFs and Mutual Funds Partner...