Exercise

Fill in the Blanks

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

2. The most well-known ETF is the Standard & Poor’s _____.

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

4. Non-traditional 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. An ETF investor does not have to pay a front- or back-end sales charge, but she 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 is subject to _____ risk.

9. ETFs offer more _____ than mutual funds because