Sentences with phrase «return swap agreements»

But unlike XIU, which invests in and holds the securities that make up the underlying index, HXT plans to use derivatives such as total return swap agreements to gain exposure to the index.

The TRI ETF then provides the investor with the total return of the index through entering a Total Return Swap agreement with one or more counterparties, typically large financial institutions, which will provide the ETF with the total return of the index in exchange for the interest earned on the cash deposit.

Not exact matches

Environmentalists see the agreement over Cameroon's forests as a bizarre reversal of the «debt - for - nature» swaps of the late 1980s, under which Third World debt was cancelled in return for agreements to protect forests.

A total return swap is a swap agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains.

Here's the basic idea: the ETF provider has an agreement with National Bank (called the counterparty) to «swap» the returns of two different portfolios.

A swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains.

The fund may also use futures, options or swap agreements to manage risk or to enhance return or as a substitute for purchasing the underlying security.