Which one of the following statements regarding exchange-traded funds (ETFs) is false?

The ETFs offer clients professional investment management and advice.

The ETFs trade at a price close to NAV.

The number of shares in the ETFs can change over time

Most ETFs track an index

Solutions

Expert Solution

The correct answer is The ETFs offer clients professional investment management and advice

The Exchange traded funds (ETFs) are the hybrid securities that has characteristics of Mutual funds and the stocks, they tracks the market index and they trade on secondary market at a price closer to Net asset value which is in accordance of each share's wieghtage of funds underlying assets. The Number of share in the ETFs doesn't change oftenly and it occurs when the underlying market index changes the number of shares.

jeff jeffy answered 2 years ago

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