Investing Review 5 ETF TDF

What is an ETF?

• Electronic Transfer System -

  Funds traded like stocks

• Exchange Traded Funds - Funds traded like stocks

• Electronic Traded Funds - Funds traded outside of the stock market

• Exchange Traded Funds - Funds traded outside of the stock market

Which is an advantage of an ETF?

• saves time for research and analysis

• lower management fees than mutual funds

• Diversification

• All of these

Which is a way to profit from an ETF? (choose all that apply)

• Dividends

• Interest

• capital gains

• All of these

Which is true of both mutual funds are ETFs?

• Both are guaranteed to be profitable.

• ETFs are always a safer investment compared to mutual funds.

• Mutual funds are always a safer investment compared to ETFs.

• Both promote diversification.

What is a TDF?

• Same thing as an ETF

• Target Date Fund

• Treasury Deferred Fund

• Technology, Data and Futures Fund

Which commonly uses a TDF as an investment vehicle? (choose all that apply)

• Retirement Funds

• Those wanting to earn profits quickly.

• College Funds

• A way to invest that will be better than the S&P 500.

Which means when you want access to your money?

• Risk Tolerance

• Time Horizon

• TDF

• Capital Gains

Which is the best reason to have a TDF?

• Guaranteed Returns

• Actively Managed Account

• Passively Managed Account

• Higher rate of return

Which commonly occurs with a TDF?

• As one gets closer to the time horizon, more stocks than bonds are bought.

• As one gets closer to the time horizon, more bonds than stocks are bought.

• The allocation of stock and bond purchase remain constant.

• As one gets closer to the time horizon, most investors want riskier investments.