Course 402: Alternative Investments
Exchange-Traded Funds (ETFs)
In this course
1 Introduction
2 Exchange-Traded Funds (ETFs)
3 Exchange-Traded Notes (ETNs)
4 Unit Investment Trusts (UITs)

ETFs are becoming increasingly popular and are very similar to conventional open-end mutual funds in that they invest assets in a portfolio of securities, often--but not always--tracking an index. Among key differences are the fact that while conventional mutual funds are priced once a day after the market closes, ETFs are repriced and traded throughout the day. There also are structural benefits regarding how an ETF operates that often lead to lower fees compared with mutual funds investing in similar portfolios, as well as some tax efficiencies. (For more on ETFs, see Portfolio 403: ETFs or Mutual Funds: Which to Choose?)

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