Which of the following features does NOT apply to exchange traded funds (ETFs)?
The best answer is D. Exchange Traded Funds are closed-end index funds that trade on an exchange. To buy or sell, a commission is charged. The price at which ETFs trade is closely tied to changes in value of the underlying index; but at any moment, the ETF can trade at a discount or premium to index value, based on market conditions. They are not forward priced like openend (mutual) funds and there are no sales charges, which is the case for load mutual funds.