Advantages of ETFs Over Managed Funds Include All but Which

question 57

Multiple Choice

Advantages of ETFs over managed funds include all but which one of the following?

• A)ETFs trade continuously so investors can trade throughout the day
• B)ETFs can be sold short or purchased on margin, unlike fund shares
• C)ETF providers do not have to sell holdings to fund redemptions
• D)ETF values can diverge from NAV

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Definitions:

Trading Securities

Financial assets that a company buys and sells with the intention of making a profit in the short term.

Debt Securities

Notes and bond investments that provide interest revenue over a fixed maturity.

Equity Securities

The common and preferred stock of a firm.

Market Price

The price at which an asset or service is traded in the open market.