Ameritrade Launches Exchange Traded Funds Center.Business Editors OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb.--(BUSINESS WIRE)--Feb. 4, 2004 Ameritrade Holding Corporation (Nasdaq:AMTD AMTD Arithmetic Mean Temperature Difference AMTD Automatic Magnetic Tape Distribution AMTD Affordability and Manufacturing Technology Demonstration ) today announced that Ameritrade, Inc.(1) has launched an online resource dedicated to Exchange Traded Funds Exchange Traded Funds (ETF) Also known as ETF. A basket of stocks similar to an index mutual fund. However, there are a number of important differences between ETFs and mutual funds. (ETFs), offering tools, education and information for active and long-term investors Long-term investor A person who makes investments for a period of at least five years in order to finance his or her long-term goals. seeking alternatives for pursuing their investment strategies(2). ETFs are baskets of securities (stocks or bonds) designed to track highly recognized indexes. Like all index funds, their low costs tend to give them a performance advantage relative to higher-cost, actively managed mutual funds. ETFs also offer greater tax efficiency because they tend to generate fewer capital gains. Additionally, they provide diversification and the flexibility of continuous, intra-day pricing because they trade like a stock. Through the Ameritrade ETF ETF See Exchange Traded Fund. ETF See exchange-traded fund (ETF). center, investors can explore the essentials of ETFs through useful links such as: -- A screening tool providing search functionality; -- Intra-day information on top-performing and most active ETFs; -- News, offering up-to-date articles, reviews and ETF-related product releases; and -- Resource pages offering fund profiles, definitions, advantages, risks, portfolio approaches and answers to frequently asked questions--important information for those interested in augmenting their personal investment or trading strategies. "Delivering tremendous flexibility, market-tracking performance and lower fees, ETFs may provide significant benefits for both the active trader and the long-term investor," said Joe Moglia Joe Moglia is the current CEO of TD Ameritrade, the largest online discount brokerage firm in the world. Born in Queens, New York, Moglia was a football coach for 16 years, finishing as a Dartmouth College assistant from 1981-1983. , chief executive officer. "As an advocate for these individuals, we feel it is important to provide this resource to investors so they can better understand their investment options." For more information, please visit www.ameritrade.com/etf. About Ameritrade Holding Corporation Ameritrade Holding Corporation has a 28-year history of servicing self-directed investors through its broker/dealer subsidiaries. Ameritrade develops and provides innovative brokerage products and services tailored to meet the varying investing and portfolio management needs of individual investors and institutional distribution partners. With 3 million client accounts, Ameritrade, Inc., a subsidiary of Ameritrade Holding Corporation, is a leader in the online brokerage business, recently receiving Forbes "Best of Web" honors as well as an overall four-star rating, and a top rating for "Ease of Use" and "Research Amenities" on the Barron's 2003 Online Broker Survey. For more information, please visit www.amtd.com. (1) Ameritrade, Inc., member NASD/SIPC (2) Exchange Traded Funds (ETFs) are registered investment company shares that trade on exchanges. Frequent dollar cost averaging may generate trading costs Trading costs Costs of buying and selling marketable securities and borrowing. Trading costs include commissions, slippage, and the bid/ask spread. See: Transactions costs. that outweigh out·weigh tr.v. out·weighed, out·weigh·ing, out·weighs 1. To weigh more than. 2. To be more significant than; exceed in value or importance: The benefits outweigh the risks. any cost benefit over a traditional mutual fund. Active traders may not experience the same ETF cost benefits as long-term investors. ETFs trade at current market price. Trading prices Trading price The price at which a security is currently selling. may differ from the net asset value of the underlying holdings. |
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