Open-End Funds Definition

Learn the definition of open-end funds and other ETF terminology from the etf.com glossary.

ETF
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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

Learn more about Open-End Funds

Open-End Funds embody a dynamic structure within the ETF landscape. These funds continuously issue and redeem shares based on investor demand, ensuring a fluid and responsive investment vehicle. The fund's share price closely aligns with its Net Asset Value, or NAV. This flexibility enables open-end ETFs to efficiently manage assets and respond to market trends. Investors benefit from the real-time alignment of the fund's market price with its intrinsic value, creating an investment vehicle that reflects the current market conditions with precision.

ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.