Structure (Legal structure)

What is it?

The Structure defines the legal form of an ETF. It reflects the jurisdiction and regulatory framework under which the fund operates, impacting taxation, investor accessibility, and operational characteristics.

The value corresponds to an established classification of fund legal structures. Some possible values include:

• SICAV (Société d'Investissement à Capital Variable) – a common form of investment funds in Europe, especially in Luxembourg, Ireland, and France.
• Mutual Fund Trust – a trust-based fund structure popular in Canada.
• Exchange-Traded Note (ETN) – a debt instrument linked to the performance of an index or asset.
• Unit Investment Trust (UIT) – an investment trust with a fixed portfolio of assets.
• Commodities Pool – a fund specializing in commodity markets.

Why is it important?

The legal structure of an ETF affects:

• Taxation – different structures may have varying tax implications for investors.
• Accessibility – some funds may be restricted to investors from specific countries.
• Operational characteristics – differences in regulatory requirements, asset management, and reporting.

Understanding the legal structure helps investors assess the risks and benefits of different ETFs and incorporate them into their investment strategy.