Insights   •   ETF Education

Introduction to ETFs

  • ETFs are exchange-traded funds
  • They trade intraday, on exchange - like stocks!
  • ETFs are generally cost-effective and liquid

Trading flexibility

Traditional open-end mutual fund shares are traded only once per day after the markets close. All trading is done with the mutual fund company that issues the shares. Investors must wait until the end of the day when the fund net asset value (NAV) is announced before knowing what price they paid for new shares when buying that day and the price they will receive for shares they sold that day. Once-per-day trading is fine for most long-term investors, but some people require greater flexibility.