How do I invest in these ETFs?
Similar to shares of publicly traded companies. Investors can buy and sell the ETF through most traditional brokerage accounts. By using fund identifiers such as a ticker symbol, ISIN or CUSIP (which can be found here: UFO), your broker can place a multitude of order types including; limit orders, marker orders, and stop orders. Our ETF can be traded throughout normal U.S. exchange trading hours.
What "exchange" is UFO traded on?
UFO is currently listed on the Nasdaq.
How often “does” UFO distribute dividends?
UFO pays out dividends, if any, from its net investment income to investors at least quarterly. UFO distributes net capital gains, if any, annually.
Can dividends from the ETFs be reinvested?
Who are "Authorized Participants"?
Authorized Participants are entities such as market makers and large institutions that are selected by an ETF’s advisor, who are allowed to create and redeem shares of an ETF.
How does the creation/redemption process work?
In the event of a creation, an Authorized Participant acquires the individual constituents that the ETF is comprised of, and deposits them with the custodian, which in turn issues the Authorized Participant the corresponding amount of Creation Units of the ETF (each Creation Unit is the equivalent of 25,000 shares of said ETF). The mechanics of the redemption process are the opposite in that the Authorized Participant deposits Creation Units of the ETF with the custodian in exchange for the individual constituents.
What are the potential tax advantages of passive ETFs?
Due to the index investment nature of ETFs, they tend to experience lower portfolio turnover, making them less likely to realize capital gains, which must be paid to investors on an annual basis. Additionally, by only allowing for the creation and redemption of funds by Authorized Participants at Creation Unit multiples, fewer taxable events occur in the day-to-day portfolio management. When fund creation/redemption transactions are of the in-kind security variety, the result is a non-taxable event for the fund.