What is the primary characteristic of an ETF that distinguishes it from a traditional mutual fund?

"Basket of securities tracking a specific index" "Tradability on stock exchanges like individual shares" "Active management by portfolio managers" "Higher expense ratios compared to mutual funds"

Which of the following factors is NOT crucial when creating an investment plan before choosing an ETF?

"Financial goals" "Risk tolerance" "Past performance of specific ETFs" "Composition of existing investment portfolio"

What does a large fund size of an ETF typically indicate?

"Guaranteed high returns" "Higher risk compared to smaller ETFs" "Investor interest and potential for higher liquidity" "Complex investment strategies and higher expense ratios"

Why is it generally advisable to consider ETFs that have been in existence for a few years?

"Older ETFs always outperform newer ETFs" "Historical data allows for performance analysis and assessment" "Older ETFs have lower expense ratios" "New ETFs carry higher risk due to lack of track record"

What is tracking error in the context of ETFs?

"The difference between an ETF's returns and the returns of the index it tracks" "The expense ratio charged by the ETF provider" "The volatility of the ETF's price on the stock exchange" "The number of securities held within the ETF basket"