ETFs can track…
- A stockNo, that’s not right.
- A group of stocks, bonds, or commoditiesNo, that’s only partly right.
- An indexNo, that’s only partly right.
- Both 2. and 3That’s right!
Which of these does an ETF NOT give investors?
- A return close to that of the index it is trackingNo, that’s not right.
- Dividends on the stocks in its portfolioNo, that’s not right.
- Voting rights for the stocks in its portfolioThat’s right!
- The right to sell the ETF share to other investorsNo, that’s not right.
What kind of ETFs can be built out of an index?
- Pretty much any collection of companies can be built into an ETFThat’s right!
- Only regulated sub-groups of an index can be built into an ETFNo, that’s not right.
- Only companies with similar risk profiles can be built into an ETFNo, that’s not right.
- Only companies in the same industries can be built into an ETFNo, that’s not right.
An ETFs return might differ from the index it’s tracking. Why is that?
- The fees the manager charges cut into the returnNo, that’s only partly right.
- The manager might lend out the ETF shares to short sellers, which gives the ETF a higher return.No, that’s only partly right.
- Managers have to track indices manually, which might lead to small errorsNo, that’s only partly right.
- All of the aboveThat’s right!
An ETF that tracks a sector will tend to be ____ volatile than one that tracks multiple sectors.
- More
- Less
- Exactly as
- None of the above
4
of 5
🔥 Nice!
You are firmly on your feet and seem to be ready to enter the stock market, but you are still stumbling over some issues. Our course will help you walk lightly and confidently. But be prepared to act on your own in the future.
Lesson 6
How to build a portfolio
Lesson 6
How to build a portfolio
