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

Question

Quizplus · Accepted Answer

Exchange traded funds (ETFs) are not simply mutual funds that invest in safe and highly liquid assets. While many ETFs do invest in these types of assets, ETFs trade on an exchange like stocks, while mutual funds are bought and sold only at the end of the trading day at the net asset value (NAV) price. Additionally, ETFs typically have lower management fees than mutual funds.

Exchange Traded Funds Are Simply Mutual Funds That Invest in Safe