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).
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Investment Companies & Packaged Products questions
- All of the following are characteristics of unit investment trusts (UITs) EXCEPT:
- Unlike open-end funds, closed-end fund shares are:
- A requirement for a company to qualify as a REIT is that it must:
- Rights of Accumulation (ROA) in mutual funds allow investors to:
- Investors in variable annuities bear which of the following risks?
- An investor wants to qualify for a mutual fund breakpoint by signing a Letter of Intent (LOI). Which is TRUE?
- Which of the following statements about 529 college savings plans is TRUE?
- Which fee is specifically designated for the marketing and distribution of mutual fund shares?