During Ben's lunch break,he logged on to his computer to find the mutual fund he wanted to buy.As he made his way around several websites,he realized that the NAV net asset value)quoted was yesterday's close.His shares would be purchased tomorrow,with today's closing price.Looking over his shoulder,one of his coworkers suggested that he look into _________ because they are similar to mutual funds,but could be traded during the entire trading day,just like stocks.

Question

Quizplus · Accepted Answer

Exchange traded funds (ETFs) are similar to mutual funds in that they are a pool of investments, but they can be bought and sold on an exchange throughout the day just like stocks. This means the NAV quoted for ETFs is live and up-to-date, eliminating the issue Ben faced with mutual funds. Index funds are a type of mutual fund, so while they also track a particular index, they still face the same issue with NAV as other mutual funds. Reality funds and barter funds are not real financial products.

During Ben's Lunch Break,he Logged on to His Computer to Find