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Glossary entry · What you own
Mutual fund
Definition
A fund that pools money from many investors to buy a basket of stocks or bonds. Similar to ETFs in concept, but mutual funds price once per day (after market close), while ETFs trade continuously like stocks. Often have higher fees than ETFs, especially when actively managed.
Example
Vanguard's Total Stock Market mutual fund holds the entire US stock market in one investment.
Related
What you own
Stock
A share of ownership in a company. You profit if the company grows; you lose if it falters.
Read →Bond
A loan you make to a government or company. They pay you interest, then return your money.
Read →ETF
A basket of many investments — often hundreds — bought in a single transaction.
Read →Index
A representative basket of a market — like the S&P 500 or the IBEX 35.
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