What is the most important difference between an index mutual fund and an exchange traded fund (ETF)?

Question

Quizplus · Accepted Answer

The most important difference between an index mutual fund and an exchange traded fund (ETF) is that ETFs trade like stocks, meaning they can be bought and sold throughout the trading day at market price. Index mutual funds, on the other hand, are priced and traded only at the end of the trading day.  Therefore, option B is the correct answer as ETFs have this unique feature that index mutual funds do not have.

What Is the Most Important Difference Between an Index Mutual