SIE Understanding Products and Their Risks Question 95: Answer and Explanation

Question: 95

Which of the following has the most members?

• A. Market ETF
• B. Inverse ETF
• C. Leveraged ETF
• D. Inverse leveraged ETF

Correct Answer: A

Explanation:

A: Choice A is correct because by far the most ETFs are market ETFs, whose intention is to gain a return over the long term which generally matches the expected favorable return of the broad market. Choices B, C, and D are incorrect because they are specialized, and there are not as many members in any of these categories.