What are two benefits of an ETF that passively follows the S&P 500 Index.
Low fees and cost
Tax advantaged
Transparent
It might be very difficult to replicate S&P individually but
ETF does so
What are two benefits of an ETF that passively follows the S&P 500 Index.
What are the benefits of holding a portfolio entirely composed of the S&P 500 Index instead of investing only in Alphabet stock? Thank you!
If all of the following mutual funds are designed to passively mimic the S&P 500 stock index, then which mutual fund would be the best choice? a. Mutual Fund D with an expense ratio of 0.12%. b. Mutual Fund C with an expense ratio of 0.07%. c. Mutual Fund B with an expense ratio of 0.59%. d. Mutual Fund A with an expense ratio of 0.28%.
The P/E ratio of the S&P 500 index is 20. The dividend payout ratio of the S&P 500 index is 30%. The expected annual growth rate of dividends for the portfolio of S&P 500 stocks is 2%. What is your estimated expected return from investing in the S&P 500?
"Suppose that SPY: SPDR S&P 500 ETF Trust closed at $302.46 on March 5th and closed at $297.46 the following day, March 6th. What was the percent change of SPY?" 1.68% -1.65% -1.68% 1.65% 2-Suppose that the current spot exchange rate of USD for Chinese Yuan is 0.14 USD / CNY. If inflation in China is 2.7% and inflation in the US 1.6%, what would the new spot exchange rate be?" 0.138 USD/CNY 0.142 USD/CNY 0.140 USD/CNY
Realized Return for the S&P 500, Microsoft, and Treasury Bills, 2002-2014 S&P 500 Index Dividends Paid S&P 500 Realized Return Microsoft Realized Return 1-Month T-Bill Return Year End 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1148.08 879.82 1111.92 1211.92 1248.29 418.30 1468.36 903.25 1115.10 1257.64 1257.60 1426.19 1848.36 2058.90 20.80 20.98 23.15 -22.1% 28.7% 109% -22 0% 6.8% 89% 15.8% 5.5% -37.0% 26 5% 158% 20.8% -44.4% 60 5% -65% -4.5% 4.8% 47%...
18. What does it mean when you invest in the S&P 500 Index or the Dow Jones Index?
For the past two years, S&P 500 Index has the annual returns of 9% and 22%. FB stock has the annual returns of 32% and 27%. Based on the information, compute the beta for FB stock.
Why could two index funds that have the objective to track the S&P 500 index have different return performance? i. Different replication strategy ii. Closet indexing iii. Differences in expense ratios iv. Transaction cost variation v. Different sales commissions vi. Style drift A) i, ii, & iv B) i., iii, iv, & v C) All are correct D) iii, iv, & v E) iii & iv
*Assuming the value of the S&P 500 stock index is currently priced at 2980, and the 1-year T-bill rate is yielding 2%, and the expected dividend yield on the S&P 500 is 2.5%, what should the 6-Months Futures Contract be priced at?
The S&P 500, a benchmark index, tracking the performance of large U.S. equities has historically returned 8.5% per annum. The average active fund manager typically earns approximately 75% of the S&P 500 and charges higher annual fees. For reference, +90% of individual, non-professional investors lose money. Calculate the accumulated account balance in 20 years based on the following assumptions. S&P 500 index fund generates 8.5% annual return and charges a 0.25% annual fee Active manager generates 75% of S&P 500...