The Primary Difference Between an Index Fund and an Exchange

question 75

Multiple Choice

The primary difference between an index fund and an exchange traded fund (ETF) is the

• A) Higher expenses associated with the ETF
• B) Fact that you can short sell an index fund, but not an ETF
• C) Fact that you pay commission to purchase an index fund, but not an ETF
• D) Greater variety of industry-specific offerings provided by index funds as compared to ETFs
• E) Fact that ETFs are traded like stocks throughout the trading period

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Definitions:

Endothelial Cells

Cells that constitute the lining of the inner surfaces of lymphatic and blood vessels, creating a barrier between the blood or lymph flowing within the lumen and the exterior of the vessel wall.

Capillary

The smallest blood vessels in the body's circulatory system, connecting arterioles to venules and facilitating the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between blood and tissues.

Arteriole

Minute artery with all three tunics that transports blood to a capillary.

Venule

Minute vein, consisting of endothelium and a few scattered smooth muscles, that carries blood away from capillaries.