Open-End Funds Definition

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

ETF
Dec 04, 2023
Edited by: etf.com Staff
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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.