Multiple trades per day
This is undoubtedly one of the biggest reasons why many people prefer ETFs over mutual funds. Open-ended mutual funds settle once a day, after the markets are closed. As an investor, you find out how much you paid for the shares you bought and how much you will receive for the shares you sold only at the end of the day, when the net asset value (NAV) of a fund is announced.
ETFs, on the other hand, trade throughout the day during regular market hours. You find out how much you paid for the shares you bought and how much you will receive for the shares you sold almost instantly.
