SIE Understanding Products and Their Risks Question 99: Answer and Explanation

Question: 99

Which of the following is the most well-known, oldest, and largest ETF?

• A. SPDR Dow Jones Industrial Average ETF (DIA)
• B. Invesco QQQ Trust (QQQ)
• C. iShares Russell 2000 ETF (IWM)
• D. SPDR® S&P 500® ETF Trust" (SPY)

Correct Answer: D

Explanation:

D: Choice D is correct. The SPDR? S&P 500? ETF Trust" (SPY) tracks the S&P 500 Index, and it is quite liquid, having reached a trading volume of 250 million shares in a day, which makes it attractive to many investors. Choices A, B, and C are incorrect because they are not the most well-known, oldest, and largest ETFs, even though they each track well-respected indexes.