单选题

An investor in exchange traded funds (ETFs) is most likely to benefit from its:

A、 end of day pricing.
B、 lack of tracking error risk.
C、 lower capital gains tax liability relative to mutual funds.

【正确答案】 C

【答案解析】

C is correct because the capital gain distribution is lower for EFFs than for mutual funds as sales of the underlying securities are not necessary to accommodate inflows/outflows as securities are transferred in kind to investors.