1. ETFs and Mutual Funds

2. An ETF (Exchange-Traded Fund) is 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

3. ETFs are appealing because they 1.Have relatively low fees 2.Are rarely traded 3.Contain one stock per ETF 4.Only invest in stocks

4. One advantage of an ETF vs. a Mutual Fund is 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

5. ETFs are _____ tax-efficient due to ___________ 1.Lessheavy trading 2.Lessmanagement fees 3.Moreinfrequent trading 4.Moreless profits

6. A load mutual fund is a mutual fund that 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

7. Index funds primary advantage over actively managed funds is 1.The tracking of an index 2.The lower operating expenses 3.The lower volatility 4.The narrower number of stocks or bonds

8. Differences between ETFs and managed mutual funds 1.ETFs trade on exchanges 2.ETFs can be bought throughout the day 3.ETF expenses are lower 4.ETFs are more tax efficient 5.ETFS have less turnover 6.All of the above 7.None of the above

9. Differences between ETFs and managed mutual funds 1.ETFS trade on exchanges 2.Bonds, lending 3.Bonds, stocks 4.Stocks, bonds