Exchange-Traded Funds (ETFs) There are partial credits available for this question since the question is...
90.2K
Verified Solution
Link Copied!
Question
Finance
Exchange-Traded Funds (ETFs)
There are partial credits available for this question since the question is not very specific. To get full marks, be careful about statements that are sometimes, but not always true. This question applies to ETFs in general, which includes smart-beta ETFs.
A.
Follow a purely passive buy-and-hold investment strategy.
B.
Are benchmarked against broad market indices (such as the S&P 500 or the Russell 2000) and these funds therefore provide exposure to the entire stock market.
C.
Have the discretion to deviate from their benchmark if the right opportunity presents itself
D.
Can follow an active, rules-based, trading strategy as dictated by the funds underlying benchmark.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
