What is exemptive relief for ETF?
The ETF Exemptive Order grants relief to an Authorized Participant that provides credit on ETF shares based on two conditions: (1) it does not accept compensation from an ETF to promote or sell the ETF’s shares outside the ETF complex, other than non-cash compensation permitted by FINRA regulations; and (2) it does not …
What license do you need to sell ETFs?
Advisors and retirement planners who want to sell ETFs must obtain a Series 7 license, which requires taking a longer and more comprehensive exam that costs more money.
What is a smart beta strategy?
Smart beta strategies seek to enhance returns, improve diversification, and reduce risk by investing in customized indexes or ETFs based on one or more predetermined “factors.” They aim to outperform, or have less risk than, traditional capitalization-weighted benchmarks but typically have lower expenses than a …
What are exchange-traded funds?
ETFs or “exchange-traded funds” are exactly as the name implies: funds that trade on exchanges, generally tracking a specific index. When you invest in an ETF, you get a bundle of assets you can buy and sell during market hours—potentially lowering your risk and exposure, while helping to diversify your portfolio.
What does exemptive relief mean?
Exemptive Relief means any approval, decision, declaration, designation, determination, exemption, extension, order, ruling, permission, recognition, revocation, waiver or other relief sought under securities legislation or securities directions; Sample 1.
Are ETFs considered 40 Act funds?
ETFs are a type of exchange-traded investment product that must register with the SEC under the 1940 Act as either an open-end investment company (generally known as “funds”) or a unit investment trust.
What is a good portfolio alpha?
Defining Alpha Alpha is also a measure of risk. An alpha of -15 means the investment was far too risky given the return. An alpha of zero suggests that an asset has earned a return commensurate with the risk. Alpha of greater than zero means an investment outperformed, after adjusting for volatility.
What is Rule 11d1?
Exchange Act section 11(d)(1) generally prohibits a person that is both a broker and a dealer from extending or maintaining credit, or arranging for the extension or maintenance of credit, to or for a customer on any security (other than an exempted security) which was part of a distribution of a new issue of …
Does section 16 apply to ETFs?
The SEC has granted no-action relief to ETFs with respect to compliance with Section 13(d) and Section 16 of the Securities Exchange Act, and has indicated that ETFs no longer need to submit requests for no-action relief unless novel or unusual issues are present.
Are hedge funds 40 Act funds?
The ’40 Act also contains a number of exemptions, including one for privately offered funds such as hedge funds, private equity funds, and real estate or infrastructure investment funds.
Are OTC stocks NMS?
Understanding the National Market System (NMS) The NMS governs exchange-based trading, such as on the New York Stock Exchange, and OTC trading on the NASDAQ.
Do you want a high or low alpha?
A high alpha is always good. A high beta may be preferred by an investor in growth stocks but shunned by investors who seek steady returns and lower risk.
What is the 13th Amendment?
The 13th Amendment was the first amendment to the United States Constitution during the period of Reconstruction. The amendment was ratified on December 6, 1865, and ended the argument about whether slavery was legal in the United States.
What does the 14th Amendment say about citizenship?
Fourteenth Amendment Annotated Section 1 All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside.
When was the 14th Amendment to the Constitution ratified?
The amendment was ratified on December 6, 1865, and ended the argument about whether slavery was legal in the United States.
When did the 13th Amendment end slavery?
Passed by Congress on January 31, 1865, and ratified on December 6, 1865, the 13th Amendment abolished slavery in the United States.