29th Oct 2009 by Mark P. Cussen, CFP, CMFC
An ETF, or Exchange-Traded Fund, is a type of mutual fund that trades like a stock on an exchange. These funds differ from traditional open-ended mutual funds in this sense. They do not have sales charges like open-end funds, but the buyer must pay a commission just like with a stock. ETFs can either be actively managed like other funds or simply hold a set portfolio of securities like a Unit Investment Trust (UIT).
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