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Question
What problem does the ETF structure solve compared to traditional mutual funds?
1
ETFs trade on stock exchanges throughout the day like stocks, providing intraday liquidity, price transparency, and tax efficiency that traditional once-per-day priced mutual funds lack
2
ETFs always fully replicate their underlying index, eliminating tracking error
3
ETFs are available to institutional investors only, providing them access to markets retail investors cannot reach
4
ETFs guarantee a higher return than mutual funds by using more efficient tax structures
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