SIE practice questioneasyETFs
A unique feature of exchange-traded funds (ETFs) compared to mutual funds is that ETFs:
- AAlways charge front-end sales loads
- BCan be traded throughout the trading day at fluctuating market prices✓ Correct answer
- CAre actively managed by portfolio managers
- DAre only available to institutional investors
Explanation
Why B — Can be traded throughout the trading day at fluctuating market prices
ETFs trade intraday on exchanges at market prices, while mutual funds are priced once per day at NAV. Not all ETFs charge loads (B), most are passively managed (C), and they are widely available (D).
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