Index Funds and Exchange-Traded Funds quiz

More questions about Index Funds and Exchange-Traded Funds

These visible examples show the question style. LearnClash turns the full topic into ranked duels and spaced repetition.

1. 1 Easy

   Which Greek letter names the extra return active funds chase?

   Answer: Alpha

   Why: A fund needs an alpha bigger than its fees just to come out ahead of a comparable index fund.

2. 2 Medium

   Which big economy is left out of the MSCI World index?

   Answer: China

   Why: MSCI rates China an emerging market, so China appears in its broader All Country World Index (ACWI), not the MSCI World.

3. 3 Hard

   What are index funds that rank stocks by factors like value called?

   Answer: Smart beta

   Why: Smart-beta funds aim to beat classic index funds for less than active fees, yet they can cost more than classic index funds.

4. 4 Easy

   What kind of ETF picks its holdings without following an index?

   Answer: Actively managed

   Why: Actively managed ETFs reached US exchanges in 2008, long after index-tracking ones.

5. 5 Medium

   How much did Bogle's index fund raise at its public launch?

   Answer: $11 million

   Why: The offering had been expected to bring in $150 million, more than 13 times what it actually raised.

6. 6 Hard

   Which exchange listed the first US ETF in 1993?

   Answer: American Stock Exchange

   Why: The exchange grew out of brokers trading on a Manhattan street curb and was called the New York Curb Exchange until 1953.