#etf providers

One of the most burdensome parts of new trading and transparency rules in Europe will potentially benefit exchange-traded fund providers. Sources said the increased transparency required by the Markets in Financial Instruments Directive II, which came into effect Jan. 3, might be to the benefit of ETFs and their providers in the form of demand for lower-fee strategies.

ETFs, the exchange traded funds are the newest investment vehicle which are slowly gaining popularity in India. But, before you understand their work mechanism, it is very important to know their creation process also. Where on one end their trading mechanism is said to be same as that of mutual funds, on the other end their creation process is exactly opposite from the creation process of mutual funds. Everybody of us knows that trading of mutual funds involve cash transaction but it is not same with the ETFs.