Business Definition for: portfolio depositary receipt
portfolio depositary receipt
Related Terms:
one of two categories of Exchange-Traded Funds. There are two forms of index shares: portfolio depositary receipts and index fund shares. Index shares represent ownership in either funds or Unit Investment Trusts that hold portfolios of common stock that closely track the performance and dividend yield of specific indices-broad market, sector, or international. Investors can buy or sell an entire portfolio of stocks embedded in a single security in the same manner they would buy any shares of common stock.
index portfolios that you buy or sell just like stocks. The best of them are super-cheap-iShares S&P 500 Index (IVV) costs 0.09% a year, half the price of the Vanguard 500-and they can be traded instantly, sold short, or bought on margin. And ETFs track an astonishing variety of indexes, from biotech to Brazilian stocks.
| Index Fund |
Expense Ratio |
Typical Commission |
| Vanguard 500 index |
0.18% |
None |
| iShares S&P 500 index |
0.09% |
$4 to $30 per trade* |
*The commission on an automatic investment plan is $4; the top base rate for one national discount brokerage is $30.
Referring Terms:
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