ETFs vs
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ETFs vs

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@BlitheRubellite

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Questions and Answers

Which of the following is NOT a way in which mutual funds and ETFs make money?

  • Dividend payments
  • Reinvesting to buy more shares (correct)
  • Capital gain distributions
  • Increased NAV/market price

    • What is an index used for?

  • To calculate capital gain distributions
  • To determine the value of a security
  • To compare different securities markets
  • To measure performance of mutual funds and ETFs (correct)

    • What are two characteristics of mutual funds mentioned in the text?

  • They are only suitable for experienced investors
  • They are similar to ETFs
  • They offer diversification and are professionally managed (correct)
  • They have low fees and expenses

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