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Canadian Securities Course (CSC) Practice Exam · Question

An investor wants to gain diversified exposure to the Canadian energy sector while maintaining intraday liquidity. Which investment product would be most suitable?

ETFs offer diversification, trade on exchanges like stocks (providing intraday liquidity), and can be sector-specific, fulfilling all the investor's requirement

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Question: An investor wants to gain diversified exposure to the Canadian energy sector while maintaining intraday liquidity. Which investment product would be most suitable?

Answer options: ✅ An Exchange-Traded Fund (ETF) focusing on Canadian energy stocks

  • A mutual fund specializing in Canadian energy companies
  • Individual common shares of a single large energy company
  • A guaranteed investment certificate (GIC)

Correct answer: An Exchange-Traded Fund (ETF) focusing on Canadian energy stocks

Explanation: ETFs offer diversification, trade on exchanges like stocks (providing intraday liquidity), and can be sector-specific, fulfilling all the investor's requirements.

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