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ETFs vs

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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

ETFs vs

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Questions and Answers

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

What is an index used for?

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

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