NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles
An open-ended mutual fund differs from an exchange-traded fund (ETF) mainly in that an ETF:
An ETF is listed and its units can be bought and sold on a stock exchange during trading hours at market prices, unlike regular open-ended fund units that are transacted with the fund at NAV. ETFs usually track an index and still have a NAV.
- ACan be bought and sold on a stock exchange at market prices during trading hoursCorrect
- BCannot track any index
- CIs always actively managed with no benchmark
- DDoes not have a NAV
Explanation
ETF units are listed and trade on exchanges throughout the day at market prices, whereas regular open-ended units are bought or redeemed from the fund at NAV. ETFs typically track an index and do have a NAV.
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