WorksheetsMutual funds & ETFs
Total questions: 10
Worksheet time: 13mins
You can diversify in multiple ways:
Assets like stocks, bonds, and real estate
Sectors like consumer goods, technology, energy, financials, etc
Markets like domestic, international, emerging markets
If you are properly diversified, a downturn in one sector or market won't sink your whole portfolio.
True
False
Tools for diversification:
Mutual Funds
ETFs (Exchange Traded Funds)
2 to 5 stocks
The modern mutual fund was born in which year?
(a)
The first successful ETF was born in which year?
(a)
Match the following
Most mutual funds are _______
actively managed
Most ETFs are ___________
passively managed
Investors trade their shares directly from the fund provider
Mutual Funds
Investors trade their shares from other investors, similar to how stocks trade on the market
ETFs
Trades can happen at any point during the day-making them even more accessible and liquid to investors
Mutual funds
ETFs
Match the following
Using analytical research, forecasts, and judgement to invest in specific stocks that will outperform the market
Active managed mutual funds or ETFs
High expense ratios (management fee)
Active managed
Tracking the S&P 500 index, automatically giving exposure to all the stocks in the index
Passive managed mutual funds or ETFs
Warren Buffett said " The trick is not to pick the right company. The trick is to essentially buy all the big companies through the (a) and to do it consistently." (That's why investing pros advise people to use low cost index funds)
Whichever option you choose, make sure you are:
Minimizing costs
Well-Diversified
Investing for the long term
