Which of the Following Is a Difference Between an Exchange-Traded

question 86

Multiple Choice

Which of the following is a difference between an exchange-traded fund (ETF) and a mutual fund?

• A) An ETF is a fixed-income instrument, whereas a mutual fund is a variable-income instrument.
• B) An ETF can only be traded at the end of the day, whereas a mutual fund can be bought or sold throughout the trading day.
• C) An ETF provides more favorable tax treatment than a mutual fund.
• D) An ETF is a convertible security, whereas a mutual fund is a nonconvertible security.
• E) An ETF is a hybrid security, whereas a mutual fund is not a hybrid security.

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Definitions:

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