ETFs · Question 5 of 12
What is the goal of a classic index ETF?
1 answer is correct. Easy
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Answer
- D To track the performance of an index as closely as possible
Explanation
An index ETF aims to replicate the performance of its index, not to outperform it. To do this, it buys the index constituents or replicates them in another way. Active funds, by contrast, try to outperform a benchmark index through selection and weighting.