ETF Quiz

What does ETF stand for?

• Exchange-Traded Fund

• Equity Trading Fund

• Exchange-Traded Finance

• Electronic Trading Fund

What is the main difference between ETFs and mutual funds?

• ETFs are bought and sold through the fund company, while mutual funds are traded on an exchange.

• ETFs and mutual funds must invest in different asset classes.

• ETFs and mutual funds have different investment strategies.

• ETFs are traded on an exchange, while mutual funds are bought and sold through the fund company.

What is the purpose of an index ETF?

• To speculate on individual stocks

• To invest in mutual funds

• To track the performance of a specific index.

• To hedge against market volatility

What is the expense ratio of an ETF?

• The proportion of the annual fees charged by the fund manager relative to the amount of assets under management.

• The percentage of the ETF's assets that are invested in stocks.

• The price at which an investor can buy or sell shares of the ETF.

• The amount of money an investor must spend to make from investing in the ETF.

True or False: ETFs can be bought and sold throughout the trading day.

• False

• Only on weekdays

• Only in the morning

• True

The ticker of an ETF is typically 5 letters long

• True

• False

ETFs generally report their investment holdings daily.

• True

• False

ETFs typically have ___ expense ratios compared to mutual funds.

• higher

• lower

• the same

If this is the name of your ETF, VictoryShares US Small Mid Cap Value Momentum ETF, one can assume

• This ETF has enjoyed significant capital appreciation, hence the "VictoryShares"

• This ETF is heavily invested in companies with over $200bn in market cap

• The fund family that this ETF belongs to is VictoryShares

• This fund is focused on companies with operations all over the globe

Which of the following is a benefit of investing in ETFs?

• Guaranteed returns

• Liquidity and flexibility

• Fixed interest rates

• No market risk