How does an ETF share differ from an open-end mutual fund unit?
AIt trades on exchanges all day
BIt is priced once at each day end
CIt can be bought only from the issuer
DIt cannot follow any stock index
Answer & Solution
Correct answer: A. It trades on exchanges all day
ETF shares are traded on exchanges on the secondary market, while open-end funds price once at day end.
Keep practising Mutual Funds
Browse all Mutual Funds questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
What risk can arise when an ETF tracks assets using futures and swaps?Replication in an index ETF means doing what?An ETF arbitrage mechanism keeps which two values close?Who creates and redeems ETF shares directly with the issuer in large blocks?What is mismarking in securities valuation?How often are a fund's investments valued for NAV?How many units does a $50,000 investment buy in a no-load fund at NAV of $25?A fund has NAV of $300 million and 2 million units. How many units does a $30 million inve