49、Which of the following statements is least accurate with respect to the advantages of open-end exchange traded funds (ETFs)? Open-end ETFs:

A. tend to trade closer to their net asset values than closed-end index funds.

B. provide for more immediate reinvestment of dividends than index mutual funds.

C. provide a more cost-effective way for large institutions to invest in emerging markets.

D. provide lower exposure to capital gains distribution taxes than traditional mutual funds.

[此贴子已经被作者于2008-11-7 15:18:45编辑过]

Correct answer = C

"Alternative Investments," Bruno Solnik and Dennis McLeavey
2008 Modular Level I, Vol. 6, pp. 180-187
Study Session 18-76-b, c
distinguish among style, sector, index, global, and stable value strategies in equity investment and among exchange traded funds (ETFs), traditional mutual funds, and closed end funds
Some sector and international ETFs have large bid-ask spreads and substantial expense ratios compared to managed portfolios, which may provide a more cost-effective alternative to ETFs, particularly for large institutional investors. 

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