ETF Quiz

FMR A

Over the past decade, the US equity has had an increasing inflow from equity ETFs while having consistent outflows from actively managed equity funds. Which of the following might have caused this change of capital flow?

All of these

The ETF with the largest AUM is:

SPY

Which of the following ETF is likely to have the least liquidity for its underlying asset?

An ETF that invests in high end office buildings

Which of the following stocks or asset classes has the highest liquidity?

Shares in Walmart

Active ETFs seeks to _____ and passive investments are designed to _____.

outperform the market; perform in line with the market

When a fund is marketed as an alpha seeking fund, what kind of fund is it?

Actively managed fund

Which of the following ETFs is likely to have its beta close to the that of the Nasdaq Index?

QQQ (US Equity)

When comparing ETFs, which of the following is/are important?

All of these

The prices for some futures market are often higher further out in time than the spot contract because of

All of these

When a commodity is trading backwardation in the futures market,

There are buyers who need delivery immediately or as soon as possible

Why are the leveraged ETFs not an ideal long-term investment?

When an ETF drops 10% in value, it will require another more than 10% of return to recover to its original value

When oil is trading backwardation in the futures market,

time is your friend.