What is an ETF?

The Ultimate Guide Why is our content free? An exchange-traded fund, ETF for short, is an investment fund that lets you buy a large basket of individual stocks or government and corporate bonds in one purchase.

What is an ETF sponsor?

A stock exchange-traded fund (ETF) is a security that tracks a particular set of equities or index but trades like a stock on an exchange. An ETF sponsor is a fund manager or financial company in charge of creating and administering an exchange-traded fund.

What is an authorized participant in an ETF?

An authorized participant has an incentive to bring the ETF share price back into equilibrium with the fund’s NAV. To do this, the AP will buy shares of the stocks that the ETF wants to hold in its portfolio from the market and sells them to the fund in return for shares of the ETF.

Can I submit a process approval request?

You may submit a Process Approval request but that does not mean the approval request will be accepted. Acceptance is by a set of 'criteria' which you either meet or do not meet.