单选题
In discussing the characteristics of exchange traded funds (ETFs) in markets where capital gains are taxed, and analyst made the following statements:
|
Statement 1 |
Compared to investment in a mutual fund, an investor exposure to taxes on capital gains distributions lower with an ETF |
|
Statement 2 |
Compared to a closed-end investment fund, an ETF is more likely to trade at net asset value |
Are the analyst's statements correct? Statement 1 Statement 2 ①A. Yes No
②B. Yes Yes
③C. No No
A．① B．② C．③
【正确答案】
B
【答案解析】An ETF does not require investors who remain in the fund to pay capital gain taxes due to redemptions by others by others. The in-kind redemption feature of an ETF means that the fund itself does not have to sell stocks to make redemptions. Because market makers are instrumental in the ETF creation and redemption processes, arbitrage helps keep the price of an ETF more in line with its underlying value (NAV).