Seminar paper from the year 2020 in the subject Business economics - Investment and Finance, grade: 1,0, University of Applied Sciences Essen, course: International Economic Policy, language: English, abstract: This term paper wants the reader to get an idea of what asset investors would prefer if they had the choice between Exchange Traded Funds and Managed Funds. Therefore, the author starts with giving an overview about these two assets including basic information, special key facts and some numbers, that show the relevance within the current capital market. After that the term paper includes a chapter about the research method as the research question will be answered with a questionnaire, which will give subjectively information by volunteer private investors. This part will be followed by an explanation about the evaluation method, at which the collected information will be analyzed and compared. Then the questionnaire`s results will be evaluated, separated into general part, ETF-part and MF-part. With the help of a self-created scorecard the preference of the interviewed people will be shown. Last but not least the author will give a conclusion, in which he will shortly summarize the content of the previous chapters and will show the final result regarding the research question. If you don`t find a way to make money while you sleep, you will work until you die.”1 This quote belongs to the US star investor Warren Buffet and inspires people all over the world to invest their money to get gain in value as well as passive income. To reach these goals people put their savings in several investment assets within a special kind of market. The capital market is a place with millions of participants, who invest in shares, bonds, properties, currencies, commodities and many more alternatives. Even digital currencies like the cryptocurrency Bitcoin is getting an interesting instrument to invest in. The universe of products that promise monetary benefits to investors is quite big and difficult to oversee. One important asset class, which has not been mentioned in this text yet, does belong to funds.