SIE Exam Question 32: Answer and Explanation

Question: 32

A type of mutual fund or exchange-traded fund (ETF) whose investment objective is to achieve approximately the same return as a specific market index, such as the S&P 500, is called a(n) __________________.

• A. Value fund
• B. Index fund
• C. Balanced fund
• D. Growth fund

Correct Answer: B

Explanation:

A type of mutual fund or ETF whose investment objective is to achieve approximately the same return as a specific market index, such as the S&P 500, is called an index fund.