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Why would an investor choose a Mutual Fund of ETFs over purchasing the ETFs directly?...

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Accounting

Why would an investor choose a Mutual Fund of ETFs over purchasing the ETFs directly?

A. Lower TER B. Only offered as no-load C. Dividend reinvestment D. Lower MER

Which of the following would likely occur when the NAV of the underlying stocks exceeds the ETF price?

A. An arbitrage opportunity does not exist B. ETF company adjusts ETF price to match NAV of underlying stocks C. Designated broker purchases ETF units on the open market and exchanges those for the underlying securities, which they sell on the open market for a profit D. Designated broker purchases the underlying securities on the open market and exchanges those for ETF units, which they sell on the open market for a profit

Which of the following ETFs experience counterparty risk? Select all that apply.

A. Leveraged B. Inverse C. Smart-beta

D. Synthetic

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