Recommendations & StrategiesQuestion 58 of 100
An investor wants exposure to a broad market index at low cost with high tax efficiency and intraday liquidity. Which vehicle is MOST appropriate?
a.A broad-market exchange-traded fund (ETF)
b.A leveraged inverse ETN held long term
c.A single micro-cap stock
d.A non-traded REIT
Explanation
A broad-market ETF offers diversified index exposure, low expense ratios, intraday trading, and generally strong tax efficiency due to its structure. Leveraged or inverse products are unsuitable for long-term index exposure, and single stocks lack diversification. The ETF best matches the stated needs.
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