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I’ve been studying some of the new Fidelity actively managed ETFs, but I’m still trying to understand how the tracking basket effects the purchase and sale price.

Here’s Fidelity’s disclaimer regarding the funds: https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/learning-center/Active-Equity-ETFs-Important-Information.pdf

This info says since they do not release their actual holdings and instead use a tracking basket, the price you buy and sell the ETF may not match the actual funds value. If I’m understanding this correctly, if the tracking basket outperforms the fund’s true holdings, the share price would be higher than it’s actual return. If that is correct, then does the ETF ever realign its share price with it’s actual holdings? Has anyone studied these more in depth to see how close the tracking basket actually matches their holdings once reported?



Submitted May 26, 2021 at 07:02PM by WastinTimeTil5 https://ift.tt/2Svkk19

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