Practice: Funds, ETFs, and Index Investing
Fourteen scored problems on how funds are priced and traded, what they cost, how to read a fund's details, and what target-date and leveraged funds really do.
What you'll do
This set works through the funds module. You'll calculate a net asset value and an ETF's premium, tell mutual funds from ETFs by how they trade, put a dollar figure on the gap between a cheap fund and an expensive one, match the details on a fund's page to what they tell you, work out what a market fall does to a target-date fund, and follow a leveraged fund through two days to see why it doesn't deliver twice the index. Each answer comes with the working, and your score appears as you go. Nothing is recorded outside this browser.
This draws on
Work through the problems in order and check each answer once you've committed to it. The score counts your first try. The funds and numbers are fictional, and the last two problems use the optional lesson on leveraged funds.
The problems in this practice set are for members
Inside, each with a worked answer: How funds are priced and traded (4 problems); Index funds and costs (4 problems); Reading a fund (2 problems); Target-date funds (2 problems); Leveraged funds (2 problems).
Membership opens every lesson in the curriculum, the capstone projects, the interactive tools, and the members-only channels in the Hyperion Entities Discord. The first lesson of every module stays free.