50．Which of the following statements is least accurate with respect to the advantages of open-end exchange traded funds (ETFs)? Open-end ETFs:

Select exactly 1 answers from the following:
A. tend to trade closer to their net asset values than closed-end index funds.
B. provide for more immediate reinvestment of dividends than index mutual funds.
C. provide a more cost effective way for large institutions to invest in emerging markets.
D. provide lower exposure to capital gains distribution taxes than traditional mutual funds.
答案和详解如下！
Feedback: Correct answer: C

International Investments, 5th edition, Bruno Solnik and Dennis McLeavey (Addison Wesley, 2004), pp. 381-382

2006 Modular Level I, Vol. IV, pp. 627-629

Study Session 17-75-e, f

distinguish among exchange traded funds (ETFs), traditional mutual funds, and closed-end funds;

explain the advantages and risks of ETFs

Some sector and international ETFs have large bid-ask spreads and substantial expense ratios compared to managed portfolios, which may provide a more cost efficient alternative to ETFs, particularly for large institutional investors.