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What is the reason why tracking error is usually less for ETFs than it is for mutual funds? a) ETFs have fewer holdings. b) ETFs

  1. What is the reason why tracking error is usually less for ETFs than it is for mutual funds?

    a) ETFs have fewer holdings. b) ETFs administrative and trading costs are lower. c) ETFs have the in-kind creation and redemption process. d) It is not true that the tracking error for ETFs is lower than it is for

    mutual funds.

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