Heartbeat Trade
A pair of in-kind transactions used by some ETF sponsors to flush out appreciated holdings without realizing taxable gains at the fund level. Pattern: an authorized participant creates a large block of new ETF shares in kind, then within a few days redeems an equivalent block in kind using a different basket designed to push out the most-appreciated lots. The mechanic is legal under current US tax rules and is one reason some ETFs report essentially zero net realized gains year after year. Optically controversial but structurally available only to ETFs.
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Active Management · Active Share · AI Revenue · Anchoring Bias · Cost of Capital · Creation Unit
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