Answer:
The correct answer is a.
Explanation:
ETFs stands for Exchange Traded Funds. This refers to a type of investment fund where investors can buy into a market basket of different stocks and bonds, which closely tracks the performance of an index. Closed-end mutual funds are similar, in that they offer shares to invest into the fund, which in turn manages a portfolio of different assets and actively buys and sells different securities.
Like closed-end mutual funds, ETFs are traded just like stocks. However, there's a few differences. ETFs shares can be bought and sold openly in the market, while closed-end funds are much more restrictive after the initial funds have been raised. Another difference is that ETFs are usually passive, in that they only track an specific index, while closed-end funds are actively buying and selling different assets to generate returns. Because of this more intensive management, closed-end funds are usually more expensive.
