How are ETFs different from mutual funds?

Although ETFs carry some advantages over other types of mutual funds, each fund comes with its own advantages and disadvantages.

Consider the case of Ana. Ana is interested in investing in either an ETF or another type of mutual fund. She is in a high tax bracket and wants to invest to minimize her tax liability.

Because they tend to trade less and generate fewer capital gains, ________(An ETF/ A non-ETF mutual fund) is a good option for Ana.

Categorizing Mutual Funds

For each of the following statements regarding mutual funds, indicate whether it is true of open-end, closed-end, or both open- and closed-end funds.

Statement	Open-End Fund	Closed-End Fund
These funds issue new shares in response to increased demand.	Y/N?	Y/N?
Investors normally buy and sell shares in this fund directly from or to the fund itself as opposed to buying them from or selling them to other investors.	Y/N?	Y/N?