Which type of fund is most likely to have low MERs?Group of answer choicesexchange traded funds (ETFs)open-ended mutual fundsclosed-ended mutual fundshedge funds

The type of fund most likely to have low Management Expense Ratios (MERs) is Exchange Traded Funds (ETFs).

Here's why:

1. ETFs are passively managed: ETFs typically track a specific index, such as the S&P 500, and therefore require less active management than mutual funds or hedge funds. This results in lower operating expenses and, consequently, lower MERs.

2. Economies of scale: ETFs are designed to attract a large number of investors. The more assets an ETF has, the lower its operating expenses per dollar invested, which can lead to lower MERs.

3. Competition: The ETF market is highly

Exchange Traded Funds (ETFs) are most likely to have low Management Expense Ratios (MERs). This is because ETFs typically aim to track a specific index and therefore require less active management compared to other types of funds. Lower management activity often results in lower expenses, which is reflected in a lower MER.