PM 36.1 - ETF Mechanics and Tracking Error
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4 Terms
1
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ETFs:
What do they typically do?
What is an AP? What do they do?
What is a creation basket?
What is the creation unit?
2
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What is the purpose of the ETF creation/redemption process?
3
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What is the arbitrage gap and why does it exist?
The band ETFs trade w/in NAV due to transactions costs and services fees for creation/redemption that are passed on as bid-ask spreads to the transacting shareholders
4
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tracking error
What is it?
Note 
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