How the Recent Market Volatility Is Impacting ETFs

How the Recent Market Volatility Is Impacting ETFs

Assessment

Interactive Video

Business

University

Hard

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The video discusses the challenges faced by fixed income ETFs during a market downturn, highlighting the difference between ETF pricing and the underlying basket. It explains how ETFs can provide real-time pricing, unlike the net asset value (NAV) which lags. The video also examines the stress in specific ETF areas, such as high-yield municipal bonds, and compares the liquidity and redemption processes of ETFs and mutual funds.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what way can mutual fund investors be impacted during a market downturn compared to ETF investors?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What advantages do ETFs have over mutual funds in terms of liquidity during market stress?

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