Coming Soon: Go beyond The Ticker

Master the mechanics behind ETFs, from market structure to execution.
Understand what really drives liquidity, pricing, and performance, all in this free foundational course.

Course contents

ETF Market Structure and Key Participants
- Who are the core participants in the ETF ecosystem, and what role does each play (Issuer, AP, Market Maker, Exchange, Investor)?
- How do Authorized Participants and Market Makers differ, and why is that distinction critical?
- How does the ETF ecosystem differ from the mutual fund structure?
- Why are exchanges central to ETF liquidity and price discovery?
- What risks arise if AP participation or market maker competition is limited?

Creation and Redemption
- What is the ETF creation and redemption mechanism, and why is it foundational to ETF structure?
- Who can create and redeem ETF shares, and why is this restricted to Authorized Participants?
- What is a creation unit, and why are creations done in large blocks?
- What are the differences between in-kind, cash, and custom basket creations?
- How does the creation/redemption process keep ETF prices aligned with NAV?

Portfolio Composition File (PCF)
- What is the Portfolio Composition File (PCF), and why is it essential for ETF functioning?
- How does the PCF enable arbitrage and secondary market liquidity?
- What information is typically included in a PCF?
- How does the PCF differ between passive and active ETFs?
- What risks would arise if PCF transparency were reduced?

Premiums, Discounts, and Arbitrage
- Why can ETFs trade at premiums or discounts to NAV?
- How does arbitrage work when an ETF trades at a premium?
- How does arbitrage work when an ETF trades at a discount?
- When and why can premiums and discounts persist?
- Why can an ETF’s market price sometimes be more informative than its NAV?

Trading and Execution Venues
- How do ETFs trade in the secondary market compared to mutual funds?
- What is the difference between on-exchange trading and RFQ trading?
- When should an investor use an RFQ instead of trading on-screen?
- What drives ETF bid-ask spreads?
- How does underlying market liquidity influence ETF execution costs?
- How does algorithmic execution influence ETF trading outcomes?

Orders and Practical Execution
- What order types are most appropriate when trading ETFs, and why?
- What is the difference between NAV vs Risk trading?
- What common mistakes lead to poor ETF execution?
- Why is trading at the open or close sometimes risky?
- What simple best practices can materially improve ETF execution outcomes?

Measuring ETF Liquidity
- What does ETF liquidity really mean, and how is it different from stock liquidity?
- What is the difference between primary and secondary market liquidity?
- Why is average daily volume (ADV) not a complete measure of ETF liquidity?
- How does underlying basket liquidity determine ETF capacity?
- What metrics best indicate true ETF liquidity (spread, depth, AUM, implied liquidity)?

Capital Markets – The Issuer’s Role
- What makes the Capital Markets function unique within asset management?
- How does Capital Markets support APs and Market Makers?
- How does Capital Markets improve spreads and trading efficiency?
-What role does Capital Markets play during large institutional trades?
- Why is Capital Markets bench strength important when evaluating ETF issuers?

Start Your Free ETF Training

This free online course offers a complete overview of the European ETF marketplace, covering market structure, creation and redemption, portfolio composition, premiums and discounts, trading and execution, liquidity, and capital markets. With 8 modules and 4 hours of content, you’ll gain a solid foundation in ETF mechanics.

Bridging the Gap in ETF Education

We created the ETF Training Hub to fill a crucial gap in the industry, until now, there have been limited opportunities for professionals to gain structured, high-quality ETF education.

Our platform provides the essential knowledge, skills, and certifications needed to excel in this fast-growing market. Whether you’re new to ETFs or looking to advance your career, our expert-led training will help you stay ahead and unlock new opportunities.

Coming Soon: Go beyond The Ticker

Course contents

Start Your Free ETF Training

Bridging the Gap in ETF Education

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