Exchange-Traded Funds: Mechanics and Applications (2025 Level II CFA® Exam – PM–Module 1)

Описание: Strengthen your CFA Level II Portfolio Management prep with a clear walkthrough of Exchange-Traded Funds. Learn how ETF creation and redemption work, how ETFs trade in secondary markets, and what drives tracking error, bid-ask spreads, premiums, discounts, costs, and risks. We also cover portfolio uses of ETFs for liquidity, rebalancing, completion, and factor tilts.

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Topic 9 – Portfolio Management
Module 1 – Exchange-Traded Funds: Mechanics and Applications
0:00 Introduction and Learning Outcome Statements
12:30 LOS: Explain the creation/redemption process of ETFs and the function of authorized participants.
16:40 LOS: Describe how ETFs are traded in secondary markets.
19:00 LOS: Describe sources of tracking error for ETFs.
24:03 LOS: Describe factors affecting ETF bid-ask spreads.
28:53 LOS: Describe sources of ETF premiums and discounts to NAV.
30:35 LOS: Describe the costs of owning an ETF.
32:02 LOS: Describe types of ETF risk.
33:17 LOS: Identify and describe portfolio uses of ETFs.
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