close
open
Both A and B
None of the above
Answer is Right!
Answer is Wrong!
The correct answer is: open-ended.
An exchange-traded fund (ETF) is a type of investment fund that tracks an index of securities such as stocks, bonds, or commodities. ETFs are traded on an exchange like stocks, and their prices fluctuate throughout the day based on supply and demand. This makes them a more liquid investment than mutual funds, which are only traded once a day at the end of the trading day.
ETFs are also known for their low tracking error, which means that they closely track the performance of the index they are tracking. This makes them a good choice for investors who want to track a particular market index without having to buy and sell individual stocks or bonds.
Here is a brief explanation of each option:
- Close-ended funds are similar to ETFs in that they track an index of securities. However, close-ended funds are not traded on an exchange like stocks. Instead, they are bought and sold through a broker, and their prices are determined by supply and demand. This makes them less liquid than ETFs.
- Both A and B is not the correct answer because ETFs are not both open-ended and close-ended. They are only open-ended.
- None of the above is not the correct answer because ETFs are open-ended funds.