There are many types of ETFs or “Exchange Traded Funds”. Let’s start with the three basics. These are exchange traded:
1. open end index mutual fund (passively managed)
2. unit investment trust, abbreviated UIT (actively managed)
3. guarantor trust
The term “exchange-traded” means that the funds are traded on the stock market. By contrast, shares of standard mutual funds are bought and sold through the company that manages the fund. Continue reading ‘What Types of ETFs Are There?’ »