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Kip Meadows joins us to talk about how ETFs are constructed. He explains that an ETF is a type of mutual fund that trades like a stock. While mutual funds aren’t technically traded until the end of the day, ETF transactions can be conducted during intraday trading. “They’re organized in a structure that allows buying shares in an underlying portfolio. That's why you go through an exchange because you have to to go through a broker dealer in order to purchase an ETF. The broker-dealer will purchase the shares in the underlying ETF and the broker-dealer is who keeps up with how many shares you own. The broker-dealer then handles the accounting to show you how many shares you own - which is different than an open-end fund where the transfer agent for the open end fund directly carries your shares at the fund. They're created the same way as any sort of registration with the Securities and Exchange Commission - you have to file the registration to become effective, and once it’s effective then you can purchase those shares through the broker-dealer.” Then our panel gets into a discussion about alternative medicinal ETFs and who’s getting into marijuana stocks. For more information, visit the show notes at http://moneytreepodcast.com/219