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Quantitative Finance · शब्दावली

In-kind transfer क्या है?

Definition 14.3 Markets I: The Ecosystem and Exchange-Traded Markets · अध्याय 14 — Exchange-Traded Funds

A creation or redemption is in kind when the AP and the fund exchange ETF shares for the securities themselves, not for cash. The fund then never trades in the market: the cost of turning cash into a portfolio, and back, is borne by the investors who come and go, not by those who stay.

The two markets of an ETF. Investors meet only the exchange. The number of ETF shares in existence changes only on the right-hand side, in creation units, at the day’s net asset value, against the basket.
Figure 14.1. The two markets of an ETF. Investors meet only the exchange. The number of ETF shares in existence changes only on the right-hand side, in creation units, at the day’s net asset value, against the basket.
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