SIE (Securities Industry Essentials) Practice Exam

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Which of the following products is considered a cheaper alternative to a mutual fund?

Bond
Stock
ETF
REIT

The correct answer is: ETF

ETFs (exchange-traded funds) are considered a cheaper alternative to mutual funds because they have lower operating costs and typically have lower management fees. Bonds are not a cheaper alternative as they are a completely different type of investment that involves lending money to a government or corporation. Stocks are also not a cheaper alternative as they involve buying a share of ownership in a company. REITs (real estate investment trusts) are also not a cheaper alternative as they involve investing in real estate properties. Therefore, C is the correct answer as it specifically mentions a product that is designed to provide a cheaper alternative to mutual funds.