Which one of the following statements about Exchange-Traded Fund (ETF) is not co

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Question
Which one of the following statements about Exchange-Traded Fund (ETF) is not correct?
Options
A. It is a marketable security.
B. It experiences price changes throughout the day.
C. It typically has lower daily liquidity and higher fees than mutual fund shares.
D. An ETF does not have its net asset value calculated once at the end of every day.

Correct Answer

It typically has lower daily liquidity and higher fees than mutual fund shares.

Explanation

An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.

?Unlike mutual funds, an ETF trades like a common stock on a stock exchange.

?ETFs experience price changes throughout the day as they are bought and sold.

?ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.

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