ETFs are priced only once a day by being redeemed or offered by the fund company at NAV. On the other hand, open-ended funds are traded on an exchange and so are priced continuously throughout the day.

Question

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ETFs, like open-ended mutual funds, trade on an exchange and are priced continuously throughout the day. However, ETFs are traded like a stock and their prices may fluctuate from their net asset value (NAV), which is calculated once a day.

ETFs Are Priced Only Once a Day by Being Redeemed