Exchange-Traded Funds: Mechanics and Applications (2025 Level II CFA® Exam – PM–Module 1)

Strengthen your CFA Level II Portfolio Management prep with a clear walkthrough of Exchange-Traded Funds. Learn how ETF creation and redemption work, how ETFs trade in secondary markets, and what drives tracking error, bid-ask spreads, premiums, discounts, costs, and risks. We also cover portfolio uses of ETFs for liquidity, rebalancing, completion, and factor tilts. Continue Your CFA Prep with AnalystPrep: Level I: https://analystprep.com/shop/cfa-leve... Level II: https://analystprep.com/shop/learn-pr... Levels I, II & III (Lifetime access): https://analystprep.com/shop/cfa-unli... Prep Packages for the FRM® Program: FRM Part I & Part II (Lifetime access): https://analystprep.com/shop/unlimite... Topic 9 – Portfolio Management Module 1 – Exchange-Traded Funds: Mechanics and Applications 0:00 Introduction and Learning Outcome Statements 12:30 LOS: Explain the creation/redemption process of ETFs and the function of authorized participants. 16:40 LOS: Describe how ETFs are traded in secondary markets. 19:00 LOS: Describe sources of tracking error for ETFs. 24:03 LOS: Describe factors affecting ETF bid-ask spreads. 28:53 LOS: Describe sources of ETF premiums and discounts to NAV. 30:35 LOS: Describe the costs of owning an ETF. 32:02 LOS: Describe types of ETF risk. 33:17 LOS: Identify and describe portfolio uses of ETFs. #CFA #CFALevelII #PortfolioManagement #ETFs #ExchangeTradedFunds #Investing #Finance #CFAExam #IndexFunds #PassiveInvesting #QuantFinance #AnalystPrep