Which of the Following Is a Difference Between an Exchange-Traded

Multiple Choice

Which of the following is a difference between an exchange-traded fund (ETF) and a mutual fund?

A) An ETF is a fixed-income instrument, whereas a mutual fund is a variable-income instrument.
B) An ETF can only be traded at the end of the day, whereas a mutual fund can be bought or sold throughout the trading day.
C) An ETF provides more favorable tax treatment than a mutual fund.
D) An ETF is a convertible security, whereas a mutual fund is a nonconvertible security.
E) An ETF is a hybrid security, whereas a mutual fund is not a hybrid security.