Exchange traded funds $($ETFs$)$ typically advertise themselves as funds investors can buy$/$sell at no extra cost. It is not true because:

I. ETFs also have to pay management and operating costs. Those are included in the calculation of the NAV.

II$.$ ETFs could have much wider bid$-$ask spreads if the fund has low trading volumes.

III. ETFs typically have lower returns than comparable mutual funds.

I, II and III

II only

I and II

I only