Frequently Asked Questions

How do I invest in the ETF?

Similar to shares of publicly traded companies, investors can buy and sell the ETF through most traditional brokerage accounts. By using fund identifiers such as a ticker symbol, ISIN or CUSIP (which can be found here: LGBT) , your broker can place a multitude of order types including; limit orders, marker orders, and stop orders. Our ETF can be traded throughout normal U.S. exchange trading hours.

How often “does” LGBT distribute dividends?

LGBT pays out dividends, if any, from its net investment income to investors at least quarterly. LGBT distributes net capital gains, if any, annually.

Who are "Authorized Participants"?

Authorized Participants are entities such as market makers and large institutions that are selected by an ETF’s advisor, who are allowed to create and redeem shares of an ETF.

What are the potential tax advantages of passive ETFs?

Due to the index investment nature of ETFs, they tend to experience lower portfolio turnover, making them less likely to realize capital gains, which must be paid to investors on an annual basis. Additionally, by only allowing for the creation and redemption of funds by Authorized Participants at Creation Unit multiples, fewer taxable events occur in the day-to-day portfolio management. When fund creation/redemption transactions are of the in-kind security variety, the result is a non-taxable event for the fund.

Why do NAVs and closing market prices differ?

As described in the prospectus, the NAV is calculated by a standard methodology. Typically this is set when the ETF’s underlying securities’ markets close. The closing market price however is the recorded last price of the trading day. This price tends to reflect the supply and demand at the time of market close. Any ETF can trade as late as 4:00 p.m. ET during the normal trading day session, however, in light volume ETFs, its last trade can occur much earlier in the day.

What "exchange" is LGBT traded on?

LGBT is currently listed on the Nasdaq.

Can dividends from the ETFs be reinvested?

Brokers may make available to their customers who own a Fund’s shares the DTC book-entry dividend reinvestment service. If this service is available and used, dividend distributions of both income and capital gains will automatically be reinvested in additional whole shares of that Fund. Without this service, investors would receive their distributions in cash.

How does the creation/redemption process work?

In the event of a creation, an Authorized Participant acquires the individual constituents that the ETF is comprised of, and deposits them with the custodian, which in turn issues the Authorized Participant the corresponding amount of Creation Units of the ETF (each Creation Unit is the equivalent of 25,000 shares of said ETF). The mechanics of the redemption process are the opposite in that the Authorized Participant deposits Creation Units of the ETF with the custodian in exchange for the individual constituents.

Which tax forms will investors receive to file their taxes?

A 1099 form will be issued by your broker.

Where is the closing price on the Fund pages derived from?

Closing prices displayed on this site are the official closing prices on the primary exchange that the fund is listed.

How can I help the environment?

You may ask for a digital copy of the Prospectus instead of a physical paper version. Talk to your broker today to find out how you can “Go Green”. Digital versions of the prospectus also add the benefit of the search function for ease of finding and navigation throughout the document.