Final answer:
The main difference between exchange-traded REITs and non-traded REITs is the level of liquidity; exchange-traded REITs are highly liquid while non-traded REITs are less liquid.
Step-by-step explanation:
The main difference between exchange-traded REITs and non-traded REITs is indeed their levels of liquidity.
Exchange-traded REITs are liquid because they are listed on major stock exchanges and can be bought and sold like any other stock on a daily basis.
On the other hand, non-traded REITs are not listed on stock exchanges and typically have restrictions on when and how they can be redeemed, making them less liquid.
Investors can generally sell their shares in an exchange-traded REIT at any time during market hours, thereby providing them with more flexibility when it comes to accessing their invested capital.