Pooled Investments: Rapid Fire

What this video covers

• Why a fund trading at a premium or discount to net asset value (NAV) must be a closed-end fund, never an open-end fund
• How open-end mutual funds use forward pricing once daily at NAV, while closed-end funds trade intraday on an exchange via supply and demand
• The distinct mechanics separating hedge fund lock-up periods from private equity and venture capital capital calls, and why both create illiquidity
• How authorized participants (APs) use creation units of typically 50,000 shares to arbitrage ETF prices near NAV, and why in-kind redemption makes ETFs more tax-efficient than mutual funds
• Why a fixed, unmanaged portfolio held to a specific termination date signals a unit investment trust (UIT), and the 15-month to 50-plus-year termination range
• The 90% taxable-income distribution requirement that applies to all REITs, and why REIT dividends are taxed as ordinary income rather than at qualified rates
• Why "registered with the Securities and Exchange Commission (SEC)" does not mean liquid, and how non-traded REITs use high upfront fees, limited redemption, and potentially borrowed or offering-proceed distributions to create an illusion of yield