What are the advantages of exchange traded funds to mutual funds and closed end investment companies...

What are the advantages of exchange traded funds to mutual funds and closed end investment companies

Just need 100-150 words with 2 refrences

Expert Solution

There are several advantages of exchange traded funds (ETF) to mutual funds and closed end investment companies. First of all ETFs have a higher degree of simplicity associated with them. One can buy and sell ETFs at one price and with one easy transaction. However in case of mutual funds shares in the assets are constantly being traded and these multiple trades result in multiple prices leading to multiple fees and commissions. Secondly ETFs are more cost effective than mutual funds and closed end schemes. This is because in case of mutual funds and closed end schemes management fees are often high as the funds have to be actively managed. This is not so the case with ETFs which involves one simple transaction. This leads to lower fees and commissions in case of ETFs.

(134 words)

References:

https://www.thebalance.com/etfs-vs-mutual-funds-the-battle-continues-1214710
https://www.investopedia.com/articles/exchangetradedfunds/11/advantages-disadvantages-etfs.asp

jeff jeffy answered 8 months ago

2. What are open-end mutual funds, closed-end mutual funds, unit investment trusts, hedge funds, and exchange...

2. What are open-end mutual funds, closed-end mutual funds, unit investment trusts, hedge funds, and exchange traded funds?

Discuss the advantages and disadvantages of exchange-traded funds versus open-end mutual funds. Include a discussion of...

Discuss the advantages and disadvantages of exchange-traded funds versus open-end mutual funds. Include a discussion of the clients most suitable for these types of investments. In response to peers, discuss further the comparison of exchange-traded funds and open-end mutual funds.

1. Exchange Traded Funds have certain advantages over index mutual funds in terms of taxation A)...

1. Exchange Traded Funds have certain advantages over index mutual funds in terms of taxation A) True B) False 2. Private Equity Companies A) Hedge their assets through clever trading strategies. B) Issue non-marketable equity claims on themselves like Hedge funds. C) Report only consolidated statements to the SEC D) Issue equity securities only to wealthy households. E) Both B and D. 3. Captive structures are created by intermediaries to A) To create asset-backed securities. B) To avoid reporting obligations...

what are some similarities and differences between mutual funds and exchange traded funds and what are...

what are some similarities and differences between mutual funds and exchange traded funds and what are there strengths and weaknesses? Give Example please! Explain as if you were talking to someone with no financial background

What are some of the advantages and disadvantages of investingin Exchange Traded Funds (ETFs) versus...

What are some of the advantages and disadvantages of investing in Exchange Traded Funds (ETFs) versus investing in individual stocks? Would you prefer to invest in ETFs or individual companies and why?

Types of Mutual Funds include the followings except Select one: a. Open-end mutual funds b. Closed-end...

Types of Mutual Funds include the followings except Select one: a. Open-end mutual funds b. Closed-end mutual funds c. Superannuation guarantee funds d. Exchange-traded funds (ETFs) e. Index funds

Discuss the advantages and disadvantages of ETFs (Exchange Traded Funds) to the banking industry.

What are the advantages of investing in mutual funds?

Finance research has shown that managers of actively managed mutual funds or exchange traded funds (ETF)

Finance research has shown that managers of actively managed mutual funds or exchange traded funds (ETF), on average, do not outperform the overall stock market as measured by the S&P 500 index (see chapter 7 PP slides and your book). In some years, more than 80% of fund managers were unable to beat the overall stock market return. The year 2013 is a good example when the S&P 500 yielded nearly 29% return, which was better than the average return...

Please compare the Open-End versus Closed-End Mutual Funds (7 marks) (250 words limit)

Please compare the Open-End versus Closed-End Mutual Funds (250 words limit)

Question