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What are three (3) ways in which an investor can gain passive market exposure. use 2-3 sentences

Question

What are three (3) ways in which an investor can gain passive market exposure.

use 2-3 sentences

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Solution

  1. One way an investor can gain passive market exposure is by investing in index funds. These are mutual funds or exchange-traded funds (ETFs) that aim to replicate the performance of a specific market index, providing a broad market exposure with low fees.

  2. Another method is through purchasing exchange-traded funds (ETFs) that track a specific sector or industry. This allows investors to gain exposure to a broad range of companies within that sector or industry without having to buy each individual stock.

  3. Lastly, investors can gain passive market exposure through buying shares of a Real Estate Investment Trust (REIT). REITs own and usually operate income-producing real estate, and by investing in them, investors can gain exposure to the real estate market without having to buy, manage, or finance any properties themselves.

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