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1.
If you want to buy or sell into an exchange-traded fund, you can do so with the fund itself, like with a mutual fund.
False. Exchange-traded funds are different in this respect. You must do your trading with other investors, not the fund itself.
2.
Like mutual funds, exchange-traded funds invest in _______.
All of the above. Though they have other differences, both investments have exposure to the same types of assets and sectors (though ETFs have more exposure to niche sectors).
3.
Exchange-traded funds provide exposure to commodities markets.
True. ETFs provide more exposure to commodities than they ever did before.
4.
Most exchange-traded funds are index funds.
True. This fact has many advantages for investors who want to minimize capital gains, as index funds rarely sell their holdings.
5.
If you incur a lot of costs while investing in exchange-traded funds, those costs will most likely be _______.
Brokerage commissions. Overhead is pretty low because the need for it is low. But you will need to pay brokerage commissions for buying and selling, and they will add up if you trade a lot.
