We all know that Exchange Traded Funds (ETFs) are low cost passive funds but have you ever wonder/know how ETF works? Vanguard has an article explaining this - How ETFs work.
Using Lion-Phillip S-REIT ETF as an example, the ETF sponsor is Lion Global Investors Limited and Phillip Capital Management (S) Ltd. The participating dealers would be the banks and brokerage firms (Phillip Securities Pte Ltd, DBS Vickers Securities (Singapore) Pte Ltd, Commerzbank AG and UOB Kay Hian Pte Ltd).
The Creation Process (Happening Now!)
The participating dealers applies for a creation unit (at least 50,000...