Comparing ETF with SPDR. Describe an ETF and explain how it combines the characteristics of open- and closed-end funds. In the Vanguard family of funds, which would most closely resemble a “Spider” (SPDR)? In what respects are the Vanguard fund (that you selected) and SPDRs the same? How are they different? If you could invest in only one of them, which would it be? Explain.

LO4 5. Comparing risks of different mutual fund types. For each pair of funds listed below, select the fund that would be the least risky and briefly explain your answer.

a. Growth versus growth-and-income

b. Equity-income versus high-grade corporate bonds

c. Intermediate-term bonds versus highyield municipals

d. International versus balanced?   L01