SIE practice questionmediumETF vs Mutual Fund
Which of the following is a key difference between ETFs and open-end mutual funds?
- AETFs trade on an exchange throughout the day; mutual funds do not✓ Correct answer
- BETFs always charge sales loads
- CMutual funds have lower expense ratios
- DOnly ETFs are subject to SEC regulation
Explanation
Why A — ETFs trade on an exchange throughout the day; mutual funds do not
ETFs trade on exchanges during market hours, while mutual funds transact at end-of-day NAV. B and C are not always true; D is false, as both are SEC-regulated.
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