Option 1: It is a marketable security. This statement is correct. ETFs are considered marketable securities because they can be bought and sold on an exchange like stocks.

Option 2: It experiences price changes throughout the day. This statement is correct. Unlike mutual funds, which have their net asset value (NAV) calculated at the end of each trading day, ETFs can be traded throughout the day like stocks, which means their prices can fluctuate throughout the trading day.

Option 3: It typically has lower daily liquidity and higher fees than mutual fund shares. This statement is incorrect. ETFs are known for their high liquidity, meaning they are easily bought and sold, often with tight bid-ask spreads. Additionally, ETFs tend to have lower fees compared to many mutual fund shares.

Option 4: An ETF does not have its net asset value calculated once at the end of every day. This statement is correct. Unlike mutual funds, ETFs do not have their NAV calculated at the end of every trading day. Instead, the price of an ETF is determined by supply and demand in the market.

In conclusion, the statement that is not correct about ETFs is option 3, as ETFs typically have higher liquidity and lower fees compared to mutual