Exchange Traded Fund

Exchange Traded Fund - An exchange traded fund is also known as a ETF. ETF is a fund that tracks what the index is doing, but can be treated and traded like a stock. These ETFs are always sold, and bought, in bundles that appear all in the same index. Actively managed mutual funds are never tracked, as they only disclose who is in their holdings a few times each year. For investors, they can do almost anything with an EFT they would do with a normal stock, even short selling them. They are traded on the stock exchange, as they can be sold or bought at any time in the day, unlike the majority of mutual funds, with prices that fluctuate depending on the minute action, just like any other stock?s price.