How does the pricing of an exchange-traded fund differ from that of a mutual fund?

1. Exchange-traded funds are like mutual funds in holding a broad basket of stocks with a common theme, giving instant diversification. 2. The difference is where they trade: exchange-traded funds trade on stock exchanges, with most on the American Stock Exchange. 3. Because they trade like shares, their prices change throughout the day. 4. Mutual fund share prices, called net asset values, are calculated once a day at the end of trading. 5. Investors can choose from more than 1,700 exchange-traded funds tracking almost any market sector, index, industry or region. 6. They carry very low expense ratios, though trading as stocks means investors pay commissions to buy and sell them. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.6 Securities Markets_