ETFs have several advantages over index funds,including the ability to
I. trade throughout the day at continuously updated prices.
II. purchase ETF shares on margin.
II. sell ETF shares short.
IV. sell the shares back to the fund.

Question

Quizplus · Accepted Answer

ETFs can be traded throughout the day at market prices (I), can be purchased on margin (II), and can be sold short (III). However, unlike mutual funds, ETF shares cannot be sold back to the fund (IV).

ETFs Have Several Advantages Over Index Funds,including the Ability to