CEF guide

Formulas

Net Asset Value

NAV = {Market Value of All Securities Held by Fund + Cash and Equivalent Holdings – Fund Liabilities} ÷ Total Fund Shares Outstanding

Discount / Premium

Premium/Discount = {Market Price – NAV} ÷ NAV

Types

Interval obligated, quarterly repurchase at NAV

Tender fund discretion

TENDER 1 Fund annouces tender offer 2 Investor sends shares to fund 3 Fund sells underlying 4 Fund sends USD to investor 5 Fund burns shares

ISSUANCE 1 Fund announces share offering 2 Investor sends USD to fund 3 Fund buys underlying securities 4 Fund mints new shares 5 Fund sends shares to investor

premium = market price>nav = reduce supply = BURN = investors tender shares = fund repurchases discount = market price<nav = increase supply = MINT = investors buy shares = fund issues

RESOURCES https://cefdata.com/fundlist/ https://cef-nav.netlify.app/ https://cefadvisors.com/closed_end_funds.html

ETFs

Creation

Operating within the primary market, the authorized participant delivers a basket of underlying securities and/or cash (“creation basket”) to the ETF issuer in exchange for a block of units in the underlying ETF with the equivalent market value (“creation unit”). These units represent an inventory that can be bought and sold on the secondary market. Upon depleting their ETF units, the authorized participant repeats the creation process, delivering additional securities in exchange for new ETF units.

Redemption

The authorized participant may also redeem ETF units by accumulating enough ETF shares to constitute at least a creation unit and then exchanging these ETF shares with the ETF issuer for an equivalent basket of underlying securities. This can occur if many ETF investors choose to sell their investments at the same time.

COUNTERPARTIES XFT Guggenheim GOF

Premium/Discount 29.04%

CREATION 1 XFT buys basket 2 XFT delievers basket to Guggenheim 3 Guggenheim mints GOF to XFT 4 XFT sells GOF at premium 5 New GOF shares are created

REDEMPTION 1 XFT buys GOF shares at discount 2 XFT sends GOF shares to Guggenheim 3 Guggenheim sends basket to XFT 4 XFT tokenizes securities in basket 5 GOF shares are destroyed/burned

creation = mint = premium = share supply increase = share price down redemption = burn = discount = share supply decrease = share price up