What are ETFs?

Answer 1

ETFs stand for exchange traded funds. They are baskets of stocks, almost like a mutual fund but they trade throughout the day.

http://ETF-World.Org/ is a good site for ETF news and analysis.

Answer 2

Exchange Traded Funds
A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.

By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you'd pay on any regular order.

One of the most widely known ETFs is called the SPDR (Spider), which tracks the S&P 500 index and trades under the symbol SPY.

http://www.smartmoney.com/etf/?nav=dropTab

Answer 3

ETFs are Exchange Traded Funds (a basket of stocks) - similar to a mutual fund but can be actively traded during the trading day. They general have low expense fees but do have a trading cost similar to trading (like buying and selling a stock). The other advantage is that you can sell them anytime during the trading day - unlike mutual funds at sell by the end of the trading end - calculating the Net Asset Value of the fund at the close. ETFs make trading greater flexibility than a mutual fund and offer in my opinion less risk than a single sector stock in most cases. Though this is my opinion and it is debatable.

The number of ETFs continues to grow with funds tracking the S&P, Dow Jones, Foreign exchanges, sector specific stocks, and so further. Check out these sources:

www.etfconnection.com
www.vanguard.com
www.ishares.com

There are dozens of web-sites that will you in dept in the various ETFs

Answer 4

ETF is an acronym for Exchange Traded Funds. These investment securities are derivatives of a specific investment topic. Normally, ETFs are made to make it easier for investors to buy into illiquid securities, simply by trading them through a common stock exchange.

For example, if you are an investor and are aware that Australian coal prices will rise because of a devastation from rain to it's reserves. It would be rather difficult to physically buy real coal, and even more difficult to sell it, making this an illiquid security.

However, stocks are probably the most liquid (opposite of illiquid) form of investing. ETFs allow you to buy stock into an ETF that derives it's value from the value of coal.

Answer 5

Or is could be Electronic Transfer Funds like in money sent out in wires or money drafted from a bank account.