Advantages That ETFs Have Over Funds That Track the Same

question 74

Multiple Choice

Advantages that ETFs have over funds that track the same index include
I. Trades are executed promptly at the current NAV.
II. The portfolio is carefully curated by a professional manager.
III. Commissions on trades may be lower than management fees.
IV. They can be sold and converted to cash more quickly than mutual fund shares.

• A) I and III only
• B) I, III and IV only
• C) II, III and IV
• D) I, II, III and IV

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Definitions:

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Distribution

In statistics, the way in which values of a variable or a set of variables are spread or dispersed across different levels.

Outliers

Data points that fall significantly outside the range of values of the other observations, potentially indicating a measurement error or a novel finding.

Earthquakes

Earthquakes are the shaking of the surface of the Earth resulting from a sudden release of energy in the Earth's lithosphere that creates seismic waves.