SIE Packaged Products: Mutual Funds, ETFs, UITs and Annuities
Updated October 27, 2026
Packaged products pool investors’ money into a portfolio. The SIE tests how the main types differ: how they’re priced, how they trade and what they cost. Here’s a comparison, followed by free practice questions.
Investment companies compared
| Product | How it’s bought and sold | Price |
|---|---|---|
| Open-end fund (mutual fund) | Bought from and redeemed with the fund company | Net asset value (NAV), calculated at the end of each trading day, plus any sales charge when buying |
| Closed-end fund | Trades on an exchange after its initial offering | Market price, which can be above or below NAV |
| Exchange-traded fund (ETF) | Trades on an exchange throughout the day | Market price, usually close to NAV |
| Unit investment trust (UIT) | Units bought from the sponsor and redeemed with the trust | Usually a fixed, unmanaged portfolio |
Mutual fund sales charges: Class A shares usually have a front-end sales charge; Class B shares, a back-end (contingent deferred) sales charge; Class C shares, an ongoing level charge. Breakpoints reduce the front-end sales charge on larger purchases.
Annuities
An annuity is an insurance contract designed for retirement income.
- Fixed annuity: the insurance company guarantees the rate; it isn’t a security.
- Variable annuity: the money goes into subaccounts that invest in securities, so the value varies. It’s a security, and selling it requires both securities and insurance licensing.
Earnings in an annuity grow tax-deferred until they’re withdrawn.
529 plans
529 plans are tax-advantaged savings plans for education. Earnings grow tax-deferred, and withdrawals used for qualified education expenses are free of federal income tax.
Free SIE packaged products practice questions
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How is an open-end mutual fund priced when an investor redeems shares?Answer: AMutual fund shares are redeemed with the fund at the next calculated NAV, which is usually figured at the end of each trading day.
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Which product trades on an exchange throughout the day at a market price?Answer: BETFs trade on exchanges all day at market prices, like stocks. Mutual funds are bought and redeemed with the fund at NAV.
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A closed-end fund's shares trade:Answer: CAfter the initial offering, closed-end fund shares trade on an exchange, so their price depends on supply and demand and can differ from NAV.
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What reduces the front-end sales charge on a large purchase of Class A mutual fund shares?Answer: DBreakpoints are purchase levels at which the front-end sales charge on Class A shares goes down.
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Why is a variable annuity considered a security while a fixed annuity isn't?Answer: AIn a variable annuity, the money is invested in subaccounts and the investor bears the risk, so it's a security. A fixed annuity's rate is guaranteed by the insurer.
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Earnings inside an annuity are:Answer: BAnnuity earnings grow tax-deferred; they're taxed as ordinary income when they're withdrawn.
Pass the SIE exam on your first try
- All 228 questions across capital markets, products and risks, trading and accounts, and regulation
- An explanation for every answer, with the law or rule behind it
- Unlimited full 75-question practice exams, with each part in its real share