Passive ETFs track an index and require minimal management, leading to lower expenses compared to actively managed ETFs.
D is correct because passive ETFs are cost-efficient and have lower fees.
A is incorrect because index ETFs have low turnover since they replicate an index.
B is incorrect because ETFs are priced continuously throughout the trading day.
C is incorrect as ETFs aim to match, not outperform, the index.
[Reference: SIE Study Guide, Chapter 7: Exchange-Traded Funds, , , , , , ]
Submit