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I am still of the belief that these are a solution in search of a problem. Now we have more circumstantial evidence:
What other exchange-traded product cannot be purchased through most brokerages?
Try getting a quote, let alone placing a trade, for the first Eaton Vance EMTF: EVSTC. When I go to most brokerages they'll give me information on mutual funds, even ones they don't sell. But Fidelity and Schwab don't recognize the symbol EVSTC.
This is a product that has to be sold like an annuity because it is not understood. UBS isn't yet offering it through their brokerage - only their advisers can sell it (for now).
The way you buy this is to say how much over NAV you're willing to pay. Then at the end of the day, you get shares at the closing NAV plus that extra amount. In contrast, with an open end fund, you get shares at the closing NAV - no premium. There's no benefit to buying EMTFs intraday, because you're going to get the closing NAV (plus or minus) anyway.
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http://www.mutualfundobserver.com/discuss/discussion/28567/ubs-to-offer-nextshares-exhanged-traded-managed-funds
I am still of the belief that these are a solution in search of a problem. Now we have more circumstantial evidence:
What other exchange-traded product cannot be purchased through most brokerages?
Try getting a quote, let alone placing a trade, for the first Eaton Vance EMTF: EVSTC. When I go to most brokerages they'll give me information on mutual funds, even ones they don't sell. But Fidelity and Schwab don't recognize the symbol EVSTC.
This is a product that has to be sold like an annuity because it is not understood. UBS isn't yet offering it through their brokerage - only their advisers can sell it (for now).
The way you buy this is to say how much over NAV you're willing to pay. Then at the end of the day, you get shares at the closing NAV plus that extra amount. In contrast, with an open end fund, you get shares at the closing NAV - no premium. There's no benefit to buying EMTFs intraday, because you're going to get the closing NAV (plus or minus) anyway.
Here's Bloomberg's quote of EVSTC:
http://www.bloomberg.com/quote/EVSTC:US