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How are Exchange-Traded Funds (ETFs) different from mutual funds?

A. ETFs offer lower fees and expenses compared to mutual funds.
B. ETFs are actively managed investment funds.
C. ETFs are not traded on stock exchanges.
D. ETFs do not provide diversification benefits.

Sagot :

GinnyAnsweridn

Final answer:

ETFs differ from mutual funds in their lower fees, passive management, and diversification benefits.


Explanation:

Exchange-Traded Funds (ETFs) are investment funds traded on stock exchanges, offering lower fees and expenses compared to mutual funds. Unlike mutual funds, ETFs are not actively managed; instead, they track a specific index or sector. ETFs provide investors with diversification benefits due to their ability to hold a variety of assets within a single fund.


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