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Mutual Fund
Index Fund
Net Asset Value
Expense Ratio

Exchange Traded Fund (ETF)
Term category: Mutual Funds, Stocks
In 10 words or less:  An index fund traded on a stock exchange.

Definition: A security that tracks a benchmark and is traded on an exchange like a stock.

StockJargon Advice: ETF's are popular because they're easy to buy and sell, are highly liquid, have low expense ratios, and allow investors to be invested "in the market."  They are not actively managed so they seek to simply match the market return, rather than beat it.

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Related Books

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