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Hedge Fund Etf

Hedge Fund EtfWhat is the difference between a stock, ETF and a mutual fund?

Also, What is a hedge fund?

Stock is a co-ownership of the company ETFs and mutual funds are a basket of securities with the differences mainly on fees and how they are negotiated. Mutual funds trade once 4PM ETFs can be traded at any time the market is open.

Hedge funds are a different animal. They are best suited for high dollar investors with a ton of risk. Normal people stay away from them.

Examples:
Stock - XOM Exxon symbol = stock

ETF - XLE - including Exxon, Chevron, Massey, etc. - a group of stocks with similar small commission, because they are not managed by anyone. Commissions (expenses as low as .1%.

Mutual Funds Say it with a mutual fund energy. Managed by a person.
This person invests in shares in the field you choose.
Commissions can be as high as 5%.
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You have the world at your fingertips! Use Google and add the word Wikipedia before each of these terms.

Posted on January 23, 2010.
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