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Fidelity Seeks Approval For Actively Run ETF Lineup
From the article: "ETFs disclose holdings daily in order to keep their share price in line with the market value of their holdings."
Not true. Only actively managed ETFs are required to disclose holdings daily (which is why this factual error doesn't matter in the context of the article about actively managed ETFs, but does matter if you care about understanding ETFs).
Rather, most ETFs are required to disclose quarterly (like mutual funds), and to disclose Portfolio Composition Files daily. These are files telling authorized participants what securities the fund will buy (or sell) to make up a creation unit. They don't exactly match the current ETF portfolio.
IndexUniverse ETF Briefing Book (10/18/2011): "Some ETF issuers, such as Vanguard, fall short of this [daily portfolio disclosure] ideal. With the exception of a small handful of actively managed ETFs that do not track an index, there is no law requiring ETFs to disclose their full portfolios every day."
ICI ETF FAQ: "In early 2008, the SEC granted exemptive relief to several fund sponsors to offer fully transparent actively managed ETFs that meet certain requirements. Among other requirements, these actively managed ETFs must disclose each business day on their publicly available websites the identities and weightings of the component securities and other assets held by the ETF. "
Comments
http://investwithanedge.com/psst-ishares-for-sale
Not true. Only actively managed ETFs are required to disclose holdings daily (which is why this factual error doesn't matter in the context of the article about actively managed ETFs, but does matter if you care about understanding ETFs).
Rather, most ETFs are required to disclose quarterly (like mutual funds), and to disclose Portfolio Composition Files daily. These are files telling authorized participants what securities the fund will buy (or sell) to make up a creation unit. They don't exactly match the current ETF portfolio.
IndexUniverse ETF Briefing Book (10/18/2011): "Some ETF issuers, such as Vanguard, fall short of this [daily portfolio disclosure] ideal. With the exception of a small handful of actively managed ETFs that do not track an index, there is no law requiring ETFs to disclose their full portfolios every day."
ICI ETF FAQ: "In early 2008, the SEC granted exemptive relief to several fund sponsors to offer fully transparent actively managed ETFs that meet certain requirements. Among other requirements, these actively managed ETFs must disclose each business day on their publicly available websites the identities and weightings of the component securities and other assets held by the ETF. "