Bond index mutual funds and exchange-traded funds (ETFs) using bonds have become increasingly popular in recent years.

Question:

Bond index and exchange-traded funds (ETFs) using bonds have become increasingly popular in recent years.
a. Would it be more or less difficult to construct a bond index mutual fund than an equity index mutual fund? Give three reasons to support your argument.
b. Would it be more or less difficult to maintain a bond index ETF than an equity index ETF? Give three reasons to support your argument.

Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...