PCF operational consideration

Outsourcing ETF functions

PCF calculation and distribution is one of many ETF functions that can be outsourced. Most ETF issuers will outsource to varying degrees, in areas such as data aggregation, risk, compliance, creation and redemption, settlement, custody, securities services, fund accounting, proxy voting, valuation, and security lending. Even when ETF issuers do some of these things under a common top level corporate umbrella, there could be several corporate sub-entities carrying out different functions.