Answer: ETFs trade throughout the day at updated prices, buy ETF shares on margin and sell ETF shares short. (I, II and III).
Step-by-step explanation:
An exchange-traded fund (ETF) is an investment fund that is traded on stock exchanges just like stocks. An exchange traded fund holds assets such as commodities, stocks, or bonds. Most ETFs track an index like the stock index or bond index. ETFs are attractive as investments due to their tax efficiency, low costs, and stock-like features.
An index fund is a mutual fund with a portfolio that is constructed to match the components of a financial market index, An index fund provides low operating expenses, broad market exposure, and low portfolio turnover.
ETFs, are more tax-efficient than index mutual funds. Also, ETFs have very low expense ratios, trade throughout the day, buy ETF shares on margin and sell ETF shares short.