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.
III. sell ETF shares short.
IV. sell the shares back to the fund.

Question

Quizplus · Accepted Answer

ETFs allow for intraday trading, purchasing on margin, and short selling, unlike traditional index funds which do not offer these features. Selling shares back to the fund is a characteristic of mutual funds, not ETFs.

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