Q: I am trying to understand how an ETF like XIU works. Does a shareholder actually own any stocks when they own this etf, or do they just own shares in a fund that tracks the TSX 60, but doesn't actually own the individual companies?
5i Research Answer:
Investors own units of the ETF. The ETF itself holds stocks directly (some ETFs will hold units of other ETFs but not in this case). Thus investors own the securities, but indirectly via their ownership of the fund.