which of the following are characteristic of exchange-traded mutual funds? course hero

by Allie Kub Published 2 years ago Updated 1 year ago 7 min read

Which category did a majority of funds outperform the market average?

Jun 06, 2016 · Exchange traded funds (ETFs) are like mutual funds because these funds permit the investor to buy shares of a collection of several stocks or shares of a collection of stocks and bonds, but, unlike mutual funds, they are traded during the day on the exchanges.

How does the federal funds rate affect the money market?

Which of the following characteristics apply to exchange-traded funds (ETFs)? I. unlimited number of outstanding shares II. typically track the performance of some index III. market prices reflect demand for the fund rather than NAV. IV. shares are purchased from and redeemed by the investment company managing the fund. I, II and IV only I, II and III only.

What is meant by the term ‘are charged’ in mutual funds?

Feb 24, 2018 · 1) Investors can short sell ETFs just like a normal stock. 1 ) Investors can short sell ETFs just like a normal stock . The correct answer is choice (1) Investors can short sell ETFs just like a normal stock. An exchange traded fund (ETF) is a basket of securities that trade on an exchange, just like a stock, and share prices fluctuate all day as the ETF is bought and sold.

What is a characteristic of an exchange-traded fund?

ETFs combine characteristics of an open-end mutual fund and a stock. Like mutual funds, ETFs represent a fractional ownership in an underlying portfolio of securities. However, ETF investors do not purchase or redeem shares from the fund based on a price calculated at a single point in the day, after market close.

Which features of exchange-traded funds ETFs make them attractive to the retail investor?

Exchange-traded funds (ETFs) are pools of investments that trade on a stock exchange. ETFs are attractive to retail investors because of their low cost, diversification, and share-like features.

Which of the following characteristics best fits an index fund?

66 Cards in this Set

An investment company:	pools funds from individual investors
A sector fund	concentrates on investing in one industry or one commodity
A fund which tracks the S&P 500 would best be classified as which type of fund?	index
Which one of the following characteristics best fits an index fund?	passively managed

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Which is an advantage Exchange-Traded Funds ETFs have over mutual funds?

Exchange-traded funds (ETFs) take the benefits of mutual fund investing to the next level. ETFs can offer lower operating costs than traditional open-end funds, flexible trading, greater transparency, and better tax efficiency in taxable accounts.

Which is a characteristic of an exchange traded fund ETF quizlet?

An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold.

What are mutual funds and ETFs?

With a mutual fund, you buy and sell based on dollars, not market price or shares. And you can specify any dollar amount you want—down to the penny or as a nice round figure, like $3,000. With an ETF, you buy and sell based on market price—and you can only trade full shares.

What are the 6 types of mutual funds?

There are six common types of mutual funds:

Money Market Funds. Money market funds invest in short-term fixed-income securities. ...
Fixed Income Funds. Fixed income funds buy investments that pay a fixed rate of return. ...
Equity Funds. Equity funds invest in stocks. ...
Balanced Funds. ...
Index Funds. ...
Specialty Funds.

Which of the following are the three key advantages of mutual funds?

exchange-traded fund. Which of the following are three key advantages of mutual funds? low initial investments, professional management, diversification.

Which of the following are three key advantages of mutual funds group of answer choices?

Mutual funds are one of the most popular investment choices in the U.S. Advantages for investors include advanced portfolio management, dividend reinvestment, risk reduction, convenience, and fair pricing. Disadvantages include high fees, tax inefficiency, poor trade execution, and the potential for management abuses.

Which of the following is an advantage of an exchange traded fund quizlet?

Exchange-traded funds can be traded during the day, just as the stocks they represent. They are most tax effective, in that they do not have as many distributions. They have much lower transaction costs. They also do not require load charges, management fees, and minimum investment amounts.

How do ETFs differ from mutual funds?

ETFs actively trade throughout the trading day while mutual fund trades close at the end of the trading day. Mutual funds are actively managed, and ETFs are passively managed investment options.

Whats better ETF or mutual funds?

When following a standard index, ETFs are more tax-efficient and more liquid than mutual funds. This can be great for investors looking to build wealth over the long haul. It is generally cheaper to buy mutual funds directly through a fund family than through a broker.