Management Investment Company

Common type of ETF that tracks indexes closely, allows sampling (not every stock in index is necessarily purchased) and derivatives in its operations. Similar to Unit Investment Trust. Examples include iShares, Sector SPDRs.

Market capitalization

The total market value of a company or stock. It is calculated by multiplying the number of shares outstanding by the latest closing price of the stock. Generally speaking, small-cap stocks have market values below $1 billion, while large-caps have values in excess of $5 billion. Mid-caps fall inbetween.

Market price

The price of an ETF as determined by the market forces of supply and demand. Unlike regular open-end mutual funds, which are always bought and sold at NAV, the market price may differ from NAV. Most ETFs typically trade at market prices near their NAVs.

Market return

The total return of an ETF based on its market price at the beginning and end of the holding period. This may be different from the ETF's NAV return. The market return is the return actually earned by ETF investors, except for those who hold creation units.

Median market capitalization

Market value (capitalization) of the middle stock in a portfolio of stocks if sorted by capitalization.

Mid cap

Refers to companies with a market capitalization between $1 billion and $5 billion.

Minimum initial purchase

Minimum an investor may deposit initially. It may be lower in some cases for IRA retirement accounts.

MSCI

Morgan Stanley Capital International, Inc. (MSCI) distributes index and company-level data and also licenses the MSCI indices to third parties for the purposes of creating Mutual Funds, listed and OTC derivatives, Exchange Traded Funds, research and proprietary products.