ETF Tips, And How Its Work's
In regulatory language, the Exchange Traded Fund (ETF) is called an open-end mutual fund in the form of a collective investment contract whose unit of participation is traded on the stock exchange. In other words, this type of mutual fund incorporates features rather than mutual funds and stocks. What does this ETF look like? Open mutual funds are mutual funds that can be resold to the issuer's Investment Manager. So in practice, you buy mutual funds from the Investment Manager. When it is released, the mutual fund is sold back to the investment manager. All existing mutual funds are fundamentally open mutual funds. Therefore, although called purchases and sales, in the language of the prospectus sometimes we can still find the word Sale transactions (Subscription) and Redemption. Both words use "Sales" because the Investment Manager "sells" to the investor then the investor "resells" when making the disbursement. The sale and resale trans...