ETFs Countered 2008 Crisis With Record Year of Volume

The video discusses the underperformance of active mutual funds compared to benchmarks, leading investors to favor passive investments like ETFs. It highlights the record trading volumes of ETFs during market downturns, showcasing their liquidity and resilience. The video also compares the performance of different investment vehicles, emphasizing the effectiveness of long-dated Treasurys as a hedge.

What was the performance of active mutual funds compared to the S&P 500 during the challenging market year?

• They matched the S&P 500's performance.

• They underperformed the S&P 500.

• They outperformed the S&P 500.

• They had no correlation with the S&P 500.

Why did some investors turn to passive investment strategies during the challenging market year?

• They believed passive strategies were cheaper and less risky.

• They wanted to avoid paying high fees for active management.

• They had no other investment options available.

• They were advised by financial experts to do so.

What role did ETFs play during market turmoil according to the transcript?

• They were avoided by investors.

• They provided much-needed liquidity.

• They were banned from trading.

• They were considered too risky.

How did the S&P 500 ETF perform in terms of trading volume during the market crisis?

• It had a record low trading volume.

• It was not traded at all.

• It reached a record high trading volume.

• Its trading volume was average.

Which investment vehicle was considered the perfect hedge during the market crisis?

• Long-dated Treasurys (TLT)

• The VIX

• Gold (GLD)

• The S&P 500 ETF