An official website of the United States government
The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
The site is secure.
Thehttps:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
An ETF is an exchange-traded investment product that must register with the SEC as an open-end investment company (or sometimes as a unit investment trust).
ETFs are similar to mutual funds. Like mutual funds, they pool money from many investors and invest the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings of the ETF are known as its portfolio, which is usually managed by an SEC-registered investment adviser. Each ETF share represents an investor’s part ownership of the ETF’s portfolio and the income the portfolio generates.
ETFs also have some differences from mutual funds. For example, unlike mutual funds, investors buy and sell ETF shares on national securities exchanges at market prices. In addition, ETFs can sometimes be more tax efficient than mutual funds.
Stay up to date with the latest Investor Alerts & Bulletins, Director’s Take Articles, Quizzes, and the Investor.gov Shares Digest.
