Please solve itASAPwith all requirements. i wanted to reply to the first page in our own words so please read the first part and write a reply to them minimum 200 words
Passive investing is possible due to the large number of available indexes and investment vehicles that track various indexes. According to Smith and Yousif (2021), "traditional indexing generally involves tracking the returns to a market-cap-weighted benchmark index. Yet most benchmark returns are driven by factors, which are risk exposures that can be identified and isolated. An investor who wants access only to specific aspects of an index's return stream can invest in a subset of constituent securities that best reflect the investor's preferred risk factors, such as Size, Value, Quality, and Momentum" (p. 611). In this discussion, you will explore the different factorbased categories of passive investment vehicles. vehicles. Prior to beginning work on this discussion, - Read Chapter 12: Passive Equity Investing in the Volume 1 textbook. For this discussion, research and select an equity index based on the following category assignments: - for last names that begin with A through D: U.S. equity market, large cap - for last names that begin with E through H: U.S. small cap - for last names that begin with I through L: U.S. sector (any), large cap - for last names that begin with M through P: U.S. style, any cap - for last names that begin with Q through U: U.S. equal weight, info tech, large cap - for last names that begin with V through Z: global broad market index (BMI), region Z: global broad market index (BMI), region In your initial post (minimum 300 words), - Identify the following facts for your selected index: - name - representation - number of securities - weighting method - rebalancing frequency - Identify any changes ("reconstitution") of the index within the past 3 years. - Include APA Style reference(s) and links to the source(s) of this information. - Evaluate the return performance of this index over the most recent 1-, 3-, and 5year time periods. - Discuss the pros and cons of investing directly in an index. Guided Response: Choose two classmates who have different index over the most recent 1-, 3-, and 5year time periods. - Discuss the pros and cons of investing directly in an index. Guided Response: Choose two classmates who have different assigned indexes, and respond to their posts. In your post (minimum 200 words), - Identify an exchange-traded fund (ETF) that provides the same representation as your classmate's index. - Hint: Search using the phrase "ETF that replicates the ___index." - Compare the ETF you proposed to your classmate's index with respect to number of securities, weighting method, rebalancing frequency, historical return performance, and fees to invest. - Discuss the pros and cons of investing in an ETF. - Pose one question about ETFs. Passive investing is possible due to the large number of available indexes and investment vehicles that track various indexes. According to Smith and Yousif (2021), "traditional indexing generally involves tracking the returns to a market-cap-weighted benchmark index. Yet most benchmark returns are driven by factors, which are risk exposures that can be identified and isolated. An investor who wants access only to specific aspects of an index's return stream can invest in a subset of constituent securities that best reflect the investor's preferred risk factors, such as Size, Value, Quality, and Momentum" (p. 611). In this discussion, you will explore the different factorbased categories of passive investment vehicles. vehicles. Prior to beginning work on this discussion, - Read Chapter 12: Passive Equity Investing in the Volume 1 textbook. For this discussion, research and select an equity index based on the following category assignments: - for last names that begin with A through D: U.S. equity market, large cap - for last names that begin with E through H: U.S. small cap - for last names that begin with I through L: U.S. sector (any), large cap - for last names that begin with M through P: U.S. style, any cap - for last names that begin with Q through U: U.S. equal weight, info tech, large cap - for last names that begin with V through Z: global broad market index (BMI), region Z: global broad market index (BMI), region In your initial post (minimum 300 words), - Identify the following facts for your selected index: - name - representation - number of securities - weighting method - rebalancing frequency - Identify any changes ("reconstitution") of the index within the past 3 years. - Include APA Style reference(s) and links to the source(s) of this information. - Evaluate the return performance of this index over the most recent 1-, 3-, and 5year time periods. - Discuss the pros and cons of investing directly in an index. Guided Response: Choose two classmates who have different index over the most recent 1-, 3-, and 5year time periods. - Discuss the pros and cons of investing directly in an index. Guided Response: Choose two classmates who have different assigned indexes, and respond to their posts. In your post (minimum 200 words), - Identify an exchange-traded fund (ETF) that provides the same representation as your classmate's index. - Hint: Search using the phrase "ETF that replicates the ___index." - Compare the ETF you proposed to your classmate's index with respect to number of securities, weighting method, rebalancing frequency, historical return performance, and fees to invest. - Discuss the pros and cons of investing in an ETF. - Pose one question about ETFs
