Definition
ETFs combine the diversification of mutual funds with intraday trading and (typically) lower management fees. The creation/redemption mechanism through authorized participants keeps the market price aligned with NAV. Active ETFs, leveraged ETFs, and inverse ETFs add complexity and require additional KYP/suitability scrutiny.
Source
NI 81-102; CSA Staff Notice 81-326
Where this shows up on the CIRE
- Outcome 7.3