Boston, March 23, 2015 – Portfolio managers can use exchange-traded funds to express their investment philosophy, but their understanding must go beyond explicit metrics such as ETF costs. Indeed, wielding ETFs’ unique operations requires a thorough understanding of the ways in which they trade. Related derivatives, authorized participants, tax considerations, and the liquidity of the underlying components are part and parcel of an overall pre-trade analysis and trade execution strategy.
Based on Q4 2014 Aite Group interviews with market participants, this research discusses portfolio execution profiling, pre-trade analysis, and trade implementation planning. It is the second installment in Aite Group’s series on the ETF trade life cycle—find the first here.
This 18-page Impact Report contains one figure and two tables. Clients of Aite Group’s Institutional Securities & Investments or Wealth Management services can download this report.