Index Fund Definition & Example - InvestingAnswers
2020年9月29日 · Index funds have several major advantages over direct ownership of the underlying securities. Here's a brief review: Diversification-- Each index fund represents an interest in an underlying basket of securities. This allows investors to gain broad exposure to a large group of companies easily. This diversification also makes
ETF - Exchange-Traded Fund - Definition & Example
2020年10月29日 · Exchange-traded funds have grown increasingly popular in recent years, and the number of offerings has swelled. Today, these securities compete with mutual funds and offer a number of advantages over their predecessors, including: Low Cost-- Unlike traditional mutual and index funds, ETFs have no front- or back-end loads.
Equity Fund Definition & Example - InvestingAnswers
2020年10月7日 · Specialty funds, which invest in stocks meeting certain criteria (such as geographic region, industry sector, social causes, etc.). Sector funds, which invest in specific stock groups, often within one industry. Index funds, which invest in the same or similar stocks as equity market indices like the S&P 500.
Mutual Fund Definition, Example, and Pros and Cons
2020年10月15日 · While there are many mutual funds on the market, one of the most popular mutual funds available is the Vanguard S&P 500 index fund (VFIAX). This fund owns the 507 total stocks represented in the S&P 500 index, while charging a very low expense ratio to investors.
Fund Definition & Example - InvestingAnswers
2020年10月15日 · Open-End Funds: Open-end mutual funds stand ready to issue and redeem shares on a continuous basis. Shareholders buy the shares at net asset value (NAV) and can redeem them at the current market price. Load Funds: The term ' load ' refers to the sales charge paid by an investor who purchases shares in a mutual fund.
Bond Fund Definition & Example - InvestingAnswers
2020年11月13日 · Bond funds come in many shapes and sizes. Some of the major bond-fund categories are: U.S. Treasury bond funds. Municipal bond funds. Mortgage-backed security funds. Corporate bond funds (within this category are several subcategories based on target maturities, credit rating, industry, etc.) International bond funds
Expense Ratio Definition & Example - InvestingAnswers
2020年10月18日 · All mutual funds charge expenses to their fund holders and those that are actively managed or specialize in specific sectors generally have the highest fees. By contrast, index funds typically carry the lowest expense ratios. After all, since their goal is to duplicate the results of an underlying index, these funds' managerial fees tend to be ...
Investment | Examples & Definition - InvestingAnswers
2021年1月9日 · Mutual Funds. A mutual fund can be thought of as a “basket” of investments. Mutual funds provide investors with access to a pool of investment options (e.g. bonds, stocks, equities). This creates a diversified portfolio of investments at a low cost. What’s contained in mutual funds depends on the stated objective of the fund, which varies ...
SPDR -- Spider -- Definition & Example - InvestingAnswers
2019年10月1日 · A spider (SPDR) is an exchange-traded fund (ETF) that tracks the Standard & Poor's 500 Index. SPDR stands for S&P Depository Receipts. However, the term can also refer to any ETF that tracks the S&P 500. The original SPDR ETF …
Income Funds Definition & Example - InvestingAnswers
2019年10月1日 · What are Income Funds? Income funds are mutual funds, ETFs or any other type of fund that seek to generate an income stream for shareholders by investing in securities that offer dividends or interest payments. The funds can hold bonds, preferred stock, common stock or even real estate investment trusts (REITs).