As it pertains to ETFs, the role of the custodial bank is to:
- physically hold the securities in a fund
- break up a creation unit into individual ETF shares
- record the fund’s investment objective
- both a & b
- 2.8%
- 4%
- 7.2%
- 14.6%
- Their returns are linked to the return of a market benchmark
- They can be shorted
- They distribute dividends and other distributions from a benchmarked index
- They trade on stock exchanges
- Individual investors have the ability to purchase and redeem ETF shares directly from the ETF provider in creation units
- The creation and redemption of ETFs is generally regarded as "in-kind" exchanges of assets
- They sell or redeem their individual shares at net asset value
- All of the above
- With the highest cost basis are typically provided to the redeemer
- With the lowest cost basis are typically provided to the redeemer
- With the highest cost basis are exchanged for holdings with the lowest cost basis by the redeemer
- With the lowest cost basis are exchanged for the shares with the highest cost basis by the redeemer
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