CFA考试资料答案R43 Exchange-Traded Funds- Mechanics and Applications - Answers.pdf

Question #1 of 4 Question ID: 1210767 ETF ownership costs are least likely to be increased by: A) security lending. B) portfolio turnover. C) bid–ask spreads. 7 3 2 1 Explanation q i s The main components of ETF cost are the fund management fee, tracking error, portfolio u turnover, trading costs (including commissions, bid–ask spreads, and premiums/discounts), m : taxable gains/losses, and security lending. These costs generally reduce returns, with the t exception of security lending, which can be considered a negative cost as it generates a additional income that osets fund expenses. Security lending for an ETF typically means h C loaning a portion of portfolio holdings to short sellers.