Which of the following is NOT considered a passive equity investment:
A)investing in a sector ETF.
B)investing in a S&P 500 index mutual fund.
C)investing in a multi-strategy hedge fund.
D)investing in a Russell 2000 index mutual fund.

Question

Quizplus · Accepted Answer

Investing in a multi-strategy hedge fund is an active equity investment, as the hedge fund manager uses various strategies to try and outperform the market. The other options (A, B, and D) are all passive equity investments, as they track the performance of specific market indexes without any active management.

Which of the Following Is NOT Considered a Passive Equity