[Answer] Which of the following is an Exchange Traded Fund?

Answer: -SPDR
Which of the following is an Exchange Traded Fund?

An exchange-traded fund (ETF) is a type of investment fund and exchange-traded product i.e. they are traded on stock exchanges. ETFs are similar in many ways to mutual funds except that ETFs are bought and sold throughout the day on stock exchanges while mutual funds are bought and sold based on their price at day’s end. An ETF holds assets such as stocks bonds currencies and/or commoditie‚Ķ

An exchange-traded fund (ETF) is a type of investment fund and exchange-traded product i.e. they are traded on stock exchanges. ETFs are similar in many ways to mutual funds except that ETFs are bought and sold throughout the day on stock exchanges while mutual funds are bought and sold based on their price at day’s end. An ETF holds assets such as stocks bonds currencies and/or commodities such as gold bars and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value although deviations can occasionally occur. Most ETFs are index funds: that is they hold the same securities in the same proportions as a certain stock market index or bond market index. The most popular ETFs in the U.S. replicate the S&P 500 Index the total market index the NASDAQ-100 index the price of gold the “growth” stocks in the Russell 1000 Index or the index of the largest technology companies. With the exception of non-transparent actively managed ETFs in most cases the list of stocks that each ETF owns as well as their weightings is posted daily on the website of the issuer. The largest ETFs have annual fees of 0.03% of the amount invested or even lower although specialty ETFs can have annual fees well in excess of 1% of the amount invested. These fees are paid to the ETF issuer out of dividends received from the underlying holdings or from selling assets. An ETF divides ownership of itself into shares that are held by shareholders. The details of the structure (such as a corporation or trust) will vary by country and even within one country there may be multiple possible structures. The shareholders indirectly own the assets of the fund and they will typically get annual reports. Shareholders are entitled to a share of the profits such as interest or dividends and they would be entitled to any residual value if the fund undergoes liquidation. ETFs may be attractive as investments because of their low costs tax efficiency and tradability. As of 2017 there were 5 024 ETFs trading globally with 1 756 ‚Ķ Read more on Wikipedia

Among the advantages of ETFs are the following some of which derive from the status of most ETFs as index funds: Costs Since most ETFs are index funds they incur low expense ratios

Among the advantages of ETFs are the following some of which derive from the status of most ETFs as index funds: Costs Since most ETFs are index funds they incur low expense ratios because they are not actively managed. An index fund is much simpler to run since it does not require security selection and can be done largely by computer. In addition unlike mutual funds because ETFs do not have to buy and sell securities to accommodate shareholder purchases and redemptions an ETF does not have to maintain a cash reserve for redemptions and saves on brokerage expenses. ETFs typically have extremely low marketing distribution and accounting expenses and most ETFs do not have 12b-1 fees . Over the long term these cost differences can compound into a noticeable difference. However some mutual funds are index funds as well and also have very low expense ratios and some specialty ETFs have high expense ratios. To the extent a stockbroker charges brokerage commissions because ETFs trade on stock exchanges each transaction may be subject to a br…

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