Four Types of Investment Products
According to the Investment Company Institute (ICI), there are four types of products that fit into the definition of investment companies: exchange-traded funds,2 mutual funds (also known as open-end funds), closed-end funds, and unit investment trusts.
Exchange-traded funds are the newest and fastest-growing category, and are the second largest category by assets. ETFs are open-ended investment funds that have a process of issuing or redeeming their shares in blocks, typically 50,000 shares or more based on customer demand. ETFs also have an exchange listing feature that gives investors access to the funds throughout the trading day on public stock exchanges.
Mutual funds are the biggest category of investment ...
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