SIE practice questioneasyETFs
An investor wishes to trade a basket of securities in real time with low expenses. Which product is most suitable?
- AExchange-Traded Fund (ETF)✓ Correct answer
- BOpen-end mutual fund
- CUnit Investment Trust (UIT)
- DPrivate equity fund
Explanation
Why A — Exchange-Traded Fund (ETF)
A is correct; ETFs offer intraday trading and typically have lower expenses. B and C do not trade throughout the day. D is not publicly traded and is illiquid.
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