SIE Exam Question 355: Answer and Explanation

Question: 355

All of the following are features of ETFs EXCEPT

• A. redeemed by the issuer.
• B. typically lower fees than closed-end company shares.
• C. initially capitalized through a public IPO.
• D. often track an index or other benchmark.

Correct Answer: A

Explanation:

A - ETFs are not redeemed by the issuer. Instead, investors liquidate shares by selling them on an exchange.