ETFs Are A 'Superior Product' Compared to Certain Mutual Funds: Fmr. Third Ave. CEO Barse

ETFs Are A 'Superior Product' Compared to Certain Mutual Funds: Fmr. Third Ave. CEO Barse

Assessment

Interactive Video

Business

University

Hard

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The video discusses the shift from active management to indexing, focusing on the X Out index strategy, which excludes the bottom 250 companies from the largest 500 U.S. companies based on technological disruption risks. It highlights the importance of rules-based investing and the active role in creating indices. The video also addresses liquidity risks in active investing and ETFs, emphasizing the sound market structure and the superior liquidity of ETFs compared to mutual funds.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary focus of the X out index strategy?

Focusing on emerging markets

Excluding underperforming companies

Investing in small-cap companies

Picking winning companies

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which factor is central to the exclusion criteria of the X out index?

Geographical location

Market capitalization

Technological disruption

Dividend yield

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the X out index handle companies that improve their performance?

They are automatically included

They are permanently excluded

They are re-evaluated quarterly

They are evaluated annually

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the 'active' component in the creation of indices like X out?

Investing in private equity

Timing the market

Creating rules-based indices

Selecting individual stocks

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a major risk associated with active investing mentioned in the discussion?

Inflation risk

High management fees

Liquidity risk

Currency risk

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the X out index mitigate liquidity risks?

By holding cash reserves

By diversifying across asset classes

By focusing on highly liquid companies

By investing in small-cap companies

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the speaker's view on the liquidity mismatch concern in fixed income ETFs?

It only affects small ETFs

It is a significant issue

It is a temporary problem

It is not a valid concern