http://www.etftrends.com/2009/01/how-short-leveraged-etfs-work.html Keeping a grip on exchange traded funds (ETFs) Fri, 20 Nov 2009 16:30:37 -0800 http://wordpress.org/?v=2.8.6 hourly 1 http://www.etftrends.com/2009/01/how-short-leveraged-etfs-work.html/comment-page-1/#comment-4775 steven dym Thu, 25 Jun 2009 13:43:41 +0000 http://www.etftrends.com/?p=7175#comment-4775 You did not explain how short & leveraged ETFs actually "work." You just explained the ramifications of their special structure. What I need to know before I get started (I manage portfolios for a bunch of wealthy individuals) is the relationship between the Authorized Participant and the ETF sponsor with respect to these newer ETF types. I know how and what the AP does with the simple ETFs - the process of creation and destruction, if you will. But since these new ETFs employ swaps (and possibly futures contracts), I need to know which entity does the swap, where the AP fits in the process, etc. I would appreciate any and all help with these questions. Thank you. You did not explain how short & leveraged ETFs actually “work.” You just explained the ramifications of their special structure. What I need to know before I get started (I manage portfolios for a bunch of wealthy individuals) is the relationship between the Authorized Participant and the ETF sponsor with respect to these newer ETF types. I know how and what the AP does with the simple ETFs – the process of creation and destruction, if you will. But since these new ETFs employ swaps (and possibly futures contracts), I need to know which entity does the swap, where the AP fits in the process, etc. I would appreciate any and all help with these questions. Thank you.

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