Question
Imagine that you just inherited $100,000 from a family friend and would like to invest it with a focus on long-term growth. You are thinking
Imagine that you just inherited $100,000 from a family friend and would like to invest it with a focus on long-term growth. You are thinking of investing it in various equities and bonds options that are traded in the New York Stock Exchange (NYSE).
Review these two investment options:
Index Fund: Schwab S&P 500 Index FundLinks to an external site.
Exchange-Traded Funds (ETF): iShares MSCI Emerging Markets ETFLinks to an external site.
List the following for both investment options:
current value of the index,
percentage of 1-year growth, and
top 10 largest holdings.
Discuss at least one advantage and one disadvantage of each investment option.
Explain which investment option you prefer and why.
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