Can someone please help me with this? I’ve been struggling with this homework question for hours and I would really appreciate the help!

Question

Question:

Which of the following advantage do exchange-traded funds have over open-ended funds?

Options:

Exchange-traded funds are always more profitable.

Owning them makes you a more popular investor.

Only exchange-traded funds can own bonds.

You can buy and sell exchange-traded funds during market hours.

None of the above.

Answer 1

Hi! The answer is D: You can buy and sell exchange=traded funds during market hours. ETFs are freely traded on exchanges - think of SPY for example! (The ETF that tracks SP 500). To buy/sell open ended funds, you need to interact with the fund itself.