Exchange-Traded Funds (ETFs) There are partial credits available for this question since the question is...

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Finance

Exchange-Traded Funds (ETFs)

There are partial credits available for this question since the question is not very specific. To get full marks, be careful about statements that are sometimes, but not always true. This question applies to ETFs in general, which includes smart-beta ETFs.

A.

Follow a purely passive buy-and-hold investment strategy.

B.

Are benchmarked against broad market indices (such as the S&P 500 or the Russell 2000) and these funds therefore provide exposure to the entire stock market.

C.

Have the discretion to deviate from their benchmark if the right opportunity presents itself

D.

Can follow an active, rules-based, trading strategy as dictated by the funds underlying benchmark.

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