What Is the Primary Disadvantage of an ETF

question 45

Multiple Choice

What is the primary disadvantage of an ETF?

• A) ETFs tend to have lower management fees than comparable index mutual bonds.
• B) ETFs usually have no minimum investment amount.
• C) Investors have to pay a broker commission each time they buy or sell shares.
• D) None of the above are disadvantages of an ETF.

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Definitions:

Nearby Object

An item or thing that is physically close to a point of reference or location.

Gestalt Principle

A theory in psychology that proposes the human brain sees objects as whole forms rather than as a collection of parts.

Proximity

The state of being close to something or someone in distance or relationship.

Organize Stimuli

The process of receiving, categorizing, and interpreting sensory information from the environment.