Characteristics of ETFs in Equity Investing

Very Easy Passive Equity Investing Exchange-traded Funds

John is an investor who wants to gain exposure to the entire U.S. equity market without picking individual stocks. He is considering using a financial instrument known as an Exchange-Traded Fund (ETF).

Which of the following statements accurately describes ETFs?

ETFs are type of mutual funds that can only be bought or sold at the end of the trading day.

ETFs can be traded throughout the trading day on exchanges, like individual stocks.

ETFs provide guaranteed returns that are fixed and predictable.

Hint

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