alleryStart learning →Index based or actively run?
Exercise and reference answers
- Left
- Index based
- Items
- Item
- Tracks an index
- Answer
- Index based
- Item
- Buys index members
- Answer
- Index based
- Item
- Manager selects
- Answer
- Actively run
- Item
- Samples the index
- Answer
- Index based
- Item
- Ignores the index
- Answer
- Actively run
- Item
- Skill of manager
- Answer
- Actively run
- Item
- Lower fees typical
- Answer
- Index based
- Item
- Higher fees usual
- Answer
- Actively run
- Right
- Actively run
- Instructions
- Swipe left for an index-based fund, right for an actively managed one.
Explanation
_Source: US SEC Office of Investor Education and Advocacy, "Mutual Funds and ETFs: A Guide for Investors", section Different Types of Investment Strategies_