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Does holding an ETF change how the exchange funds are managed?

Updated yesterday

Yes, but mostly in ways that are designed to enhance efficiency and alignment with the benchmark.

With Index Sync, we use a portion of the incoming portfolio to build a position in a benchmark-aligned ETF. This provides the fund with immediate, diversified benchmark exposure, while allowing greater flexibility for incoming stocks.

That said, the core principles of exchange fund management remain unchanged: investor contributions are pooled, concentration risk is diversified, and the structure is designed for tax deferral and long-term investing.

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