Dictionary of Accounting Terms: Equity Transfer Funds (ETFs)
Equity Transfer Funds (ETFs)
equity indices that were introduced in 1993 as a way for investors to buy into a liquid, transparent, and diverse basket of stocks while paying less than they would for a mutual fund. The shares are priced in real time, tracking the value of their underlying index, and can be held as long-term investments,flipped for a quick profit or sold short to hedge equity risk.