Exercise

Answer the following questions.

1. A UIT sells units of securities also known as _____.

2. The most well-known ETF is the _____.

3. The investment portfolios held by ETFs and other UITs are not actively managed, so the investor will have no _____.

4. Nontraditional ETFs use _____ to generate profits.

5. What is both an advantage and a disadvantage of investing in a UIT? The portfolio _____.

6. UIT units must be sold with _____.

7. ETFs do not have a front- or back-end sales charge, but the investor will have to pay _____.

8. ETFs track an index, but imperfectly, due to cash held, fund fees, and how liquid an asset or a market is; thus, an ETF