Front

When talking about investing, what does it mean when someone refers to a fund?

Back

A pool of money from shareholders that is used to invest in a collection of assets like stocks and bonds.

Front

The goal of an actively managed fund is to outperform the market. What does this mean?

Back

The fund is managed by a fund manager, who tries to beat the overall market’s rate of return

Front

All of the following are true about a passively managed fund EXCEPT…
Fees for a passively managed fund are typically lower than those for an actively managed fund
Passively managed funds are generally seen as low risk investments
A passively managed fund seeks to match the average return of the securities it includes
Passively managed funds are managed by a fund manager

Back

Passively managed funds are managed by a fund manager

Front

Geraldo reviews his brokerage statement and sees the following two mutual fund investments that he made a year ago. ActiveFund20 had an average return (before fees) of 7.0% per year and an annual fee of 1%. PassiveFund500 had an average return (before fees) of 6.5% per year and an annual fee of 0.1%. Which investment had a better return for Geraldo (net of fees)?

Back

PassiveFund500: It had an overall return of 6.4% while ActiveFund20 had an overall return of 6.0%.

Front

Why are Index Funds such a popular investing option?

Back

They provide a low-cost, diversified investment option that closely matches the overall return of a given index, such as the S&P 500

Front

Which of the following statements about Exchange Traded Funds (ETFs) is TRUE? ETFs are traded once a day after the market closes, An ETF is a single stock that you can buy in the stock market, Actively managed ETFs have very low fees, ETF prices can change throughout the day as they are exchanged on the market

Back

ETF prices can change throughout the day as they are exchanged on the market

Front

I am actively managed and usually come with higher fees. Which investment am I?

Back

Mutual Fund

Front

I am best for beginner investors who want to build their retirement fund. I don't require much work as an investor and am often referred to as a set-it-and-forget-it fund. Which investment am I?

Back

TDF

Front

I am passively managed and usually come with lower fees. Which investment am I?

Back

Index Fund

Front

I can be bought and sold throughout the day. Which investment am I?

Back

ETF