Tag: mutual

Bond ETF definition explanation

What is Bond ETF?
A type of exchange-traded fund (ETF) that exclusively invests in bonds. Bond ETFs are very much like bond mutual funds in that they hold a portfolio of bonds and can differ widely in strategies, ranging from U.S. Treasuries to high yields, from long-term to short-term. Bond ETFs trade like stocks and are passively managed. Read more for examples and further explanation including related video clips and also comments
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Energy ETF definition explanation

What is Energy ETF?
A broad class of ETFs that includes funds focused on oil and gas exploration, the generation, distribution and retail sale of gas and other refined products, electric utilities and alternative energy production. Energy ETFs may invest in only United States-based companies, globally based energy companies, or a blend of the two.

The offerings within the energy ETF class include replications of the energy-sector stocks found in the S&P 500, U.S. energy producers, global energy producers and funds of a particular sub-sector designation, such as nuclear, coal, gas, etc. The weighting of stocks within these ETFs can be market-cap based, equally-weighted or fundamentally weighted, based on financial metrics like net earnings and dividend yield. Read more for examples and further explanation including related video clips and also comments
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Enhanced Index Fund – EIF definition explanation

What is Enhanced Index Fund – EIF?
A mutual fund that tracks a stock market index, but with certain modifications in place to allow for more equivalent position sizes, the exclusion of certain securities, or the use of leverage, all with the goal of beating the return of the tracking index. These types of funds are actively managed, and will often use the S&P 500 Index as the tracking index. Read more for examples and further explanation including related video clips and also comments
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Quid Pro Quo definition explanation

What is Quid Pro Quo?
A Latin phrase meaning “”something for something””. This term is typically used in financial circles to describe a mutual agreement between two parties in which each party provides a good or service in return for a good or service. Read more for examples and further explanation including related video clips and also comments
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12B-1 Fund definition explanation

What is 12B-1 Fund?
A type of mutual fund that charges its holders 12B-1 fees instead of up-front or back-end commissions. 12B-1 funds take a portion of assets held and use them to pay expense fees and distribution costs. These costs are included in the fund’s expense ratio and are described in the prospectus. Read more for examples and further explanation including related video clips and also comments
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Negotiable Order of Withdrawal (NOW) Account definition explanation

What is Negotiable Order of Withdrawal (NOW) Account?
An interest-earning bank account with which the customer is permitted to write drafts against money held on deposit. Also known as a “”NOW account””. Read more for examples and further explanation including related video clips and also comments
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Frequency Distribution definition explanation

What is Frequency Distribution?
A representation, either in a graphical or tabular format, which displays the number of observations within a given interval. The intervals must be mutually exclusive and exhaustive. Frequency distributions are usually used within a statistical context. Read more for examples and further explanation including related video clips and also comments
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Trailer Fee definition explanation

What is Trailer Fee?
A fee that a mutual fund manager pays to a salesperson who sells the fund to investors. The trailer fee pays the salesperson for providing the investor with ongoing investment advice and services.

Also known as a “”trailer commission””. Read more for examples and further explanation including related video clips and also comments
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Private Investment in Public Equity – PIPE definition explanation

What is Private Investment in Public Equity – PIPE?
A private investment firm’s, mutual fund’s or other qualified investors’ purchase of stock in a company at a discount to the current market value per share for the purpose of raising capital. There are two main types of PIPEs – traditional and structured. A traditional PIPE is one in which stock, either common or preferred, is issued at a set price to raise capital for the issuer. A structured PIPE, on the other hand, issues convertible debt (common or preferred shares). Read more for examples and further explanation including related video clips and also comments
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