Which of the following statements is incorrect?
A)Exchange-traded funds (ETFs) are designed to mimic particular stock indexes and are traded on a stock exchange.
B)Unlike a closed-end fund, an ETF has a fixed number of shares.
C)ETFs differ from most open-end and closed-end funds in that they are not actively managed.
D)One disadvantage of ETFs is that each purchase of additional shares must be done through the exchange where they are traded.

Question

Quizplus · Accepted Answer

ETFs do not have a fixed number of shares. They can create and redeem shares based on market demand.

Which of the Following Statements Is Incorrect