Understanding ETFs

What is a key advantage of investing in an ETF compared to a single stock?

• Guaranteed profits

• Lower trading fees

• Higher potential returns

• Diversification of assets

Who is responsible for deciding the assets included in an ETF?

• Government regulators

• Stock exchange officials

• Professional fund managers

• Individual investors

What is a cost-related benefit of ETFs over mutual funds?

• Higher expense ratios

• Lower expense ratios

• No trading fees

• Guaranteed returns

Which type of ETF aims to mimic the performance of a specific index?

• Index ETF

• Thematic ETF

• Commodity ETF

• Sector ETF

What should investors consider when choosing an ETF?

• The color of the ETF's logo

• The ETF's alignment with their investment goals

• The popularity of the ETF

• The ETF's advertising budget