ETF (Exchange Trading Funds - Filters)

Question 1

What is the definition of Equities?

Answer 1

Stocks

Equities represent ownership in a company.

Question 2

What is Fixed income?

Answer 2

Bonds

Fixed income investments provide returns in the form of regular interest payments.

Question 3

What does Real estate refer to in investment terms?

Answer 3

REITS

Real Estate Investment Trusts (REITS) allow individuals to invest in large-scale, income-producing real estate.

Question 4

What are Alternative investments?

Answer 4

Investments outside traditional asset classes

Examples include hedge funds, private equity, and commodities.

Question 5

What does Niche refer to in investment?

Answer 5

Where their main focus is on

A niche can denote a specific market segment or investment strategy.

Question 6

What is a passively managed ETF?

Answer 6

An ETF that tracks a specific index and does not involve frequent buying and selling of assets

Example: S&P 500 ETF.

Question 7

What distinguishes actively managed ETFs from passively managed ETFs?

Answer 7

Portfolio managers make strategic investment decisions to attempt to outperform the market

Active management involves more frequent trading.

Question 8

What is an example of an investment strategy mentioned?

Answer 8

ESG class

ESG stands for Environmental, Social, and Governance criteria in investing.

Question 9

What happens when you own VYM (Vanguard High Dividend Yield ETF) and it pays a dividend?

Answer 9

You receive the cash directly

This reflects the distribution of earnings to shareholders.

Question 10

What does UCITS compliance apply to?

Answer 10

ETFs, mutual funds, and other investment vehicles distributed across the EU

UCITS stands for Undertakings for Collective Investment in Transferable Securities.