Exchangetraded funds are simply mutual funds that invest in safe and highly liquid assets.

Question

Exchange­traded funds are simply mutual funds that invest in safe and highly liquid assets.

Quizplus · Accepted Answer

While ETFs are a type of fund that can invest in a variety of assets, including safe and liquid ones, they are not exclusively limited to those types of assets. ETFs can also invest in more complex and risky assets such as derivatives, commodities, and currencies. Additionally, ETFs are traded on stock exchanges like individual stocks, whereas traditional mutual funds are bought and sold through the mutual fund company.

Exchange­traded Funds Are Simply Mutual Funds That Invest in Safe

Exchangetraded Funds Are Simply Mutual Funds That Invest in Safe