ETF (Exchange-traded fund)

Roles that need it

• Index & ETF Analyst
• Investment Product Specialist
• Fund Accountant
• Markets Sales Analyst
• Fund Selection Analyst

Skills it belongs to

• Financial markets knowledge
• Fund regulation and structures (UCITS, AIFMD, US 1940 Act)

Related concepts

• ETF creation and redemptionCreation and redemption is the primary market process in which an authorised participant delivers a basket of securities or cash to an ETF in exchange for new ETF units (creation), or returns units for the basket (redemption). It keeps the exchange price close to the net asset value through arbitrage.
• Authorised participant (AP)An authorised participant (AP) is a financial firm with a contract with an ETF issuer that allows it to create and redeem ETF units directly with the fund. APs and market makers keep the ETF's exchange price close to its net asset value by arbitrage and provide liquidity on exchange.
• UCITS (Undertakings for collective investment in transferable securities)A UCITS is an open-ended investment fund authorised under Directive 2009/65/EC that invests in liquid financial assets under diversification and leverage limits. A UCITS authorised in one member state can be marketed to retail investors across the EU with a passport, and it must appoint a depositary.
• NAV (Net asset value)Net asset value (NAV) is the value of a fund's assets minus its liabilities. NAV per share, or per unit, is the NAV of a share class divided by the number of shares in issue, and it is the price at which investors subscribe to and redeem from an open-ended fund.

Sources

• Guidelines on ETFs and other UCITS issues, ESMA (external site) accessed 31 Oct 2026
• Directive 2009/65/EC (UCITS Directive), EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.