ETFs and Mutual Funds. An ETF (Exchange-Traded Fund) is 1.A company traded on an exchange 2.A mutual...
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Transcript of ETFs and Mutual Funds. An ETF (Exchange-Traded Fund) is 1.A company traded on an exchange 2.A mutual...
ETFs and Mutual Funds
An ETF (Exchange-Traded Fund) is
A company tr
ad...
A mutu
al fund ...
Simila
r to a m
...
33% 33%33%1. A company traded on an exchange
2. A mutual fund that can be bought direct from the mutual fund company
3. Similar to a mutual fund that trades like a stock
ETFs are appealing because they
Have
relati
vel...
Are ra
rely tr
a...
Contain one st
...
Only in
vest
in...
25% 25%25%25%1. Have relatively low fees
2. Are rarely traded3. Contain one stock
per ETF4. Only invest in stocks
One advantage of an ETF vs. a Mutual Fund is
ETFs c
an be bought th...
ETFs a
re more lik
ely to
...
ETFs a
re less
volatile th..
ETFs c
an invest
in more
...
25% 25%25%25%1. ETFs can be bought throughout the trading day while mutual funds can only be purchased once a day
2. ETFs are more likely to increase in value vs. a mutual fund
3. ETFs are less volatile than a mutual fund
4. ETFs can invest in more securities than a mutual fund
ETFs are _____ tax-efficient due to ___________
Lessh
eavy tr
ad...
Lessm
anagement..
.
More
infrequent..
.
More
less pro
fi...
25% 25%25%25%1. Less heavy trading2. Less management
fees3. More infrequent trading4. More less profits
A load mutual fund is a mutual fund that
is “l
oaded up”...
charges a
sale...
Is “l
oaded up”...
a mutu
al fund ...
25% 25%25%25%1. is “loaded up” with few stocks
2. charges a sales charge when purchased
3. Is “loaded up” with many stocks
4. a mutual fund that invests in municipal load investments
Index funds primary advantage over actively managed funds is
The track
ing o...
The lower o
per...
The lower v
ola...
The narrower n
...
25% 25%25%25%1. The tracking of an index
2. The lower operating expenses
3. The lower volatility4. The narrower number
of stocks or bonds
Differences between ETFs and managed mutual funds
ETFs t
rade on ...
ETFs c
an be bo...
ETF expense
s a...
ETFs a
re more ...
ETFS h
ave less.
..
All of t
he abo...
None of t
he ab...
14% 14% 14% 14%14%14%14%1. ETFs trade on exchanges2. ETFs can be bought
throughout the day3. ETF expenses are lower4. ETFs are more tax efficient5. ETFS have less turnover6. All of the above7. None of the above
Differences between ETFs and managed mutual funds
1. ETFS trade on exchanges
2. Bonds, lending3. Bonds, stocks4. Stocks, bonds