creation unit

(redirected from Creation Units)

Creation Unit

The set of securities underlying an exchange-traded fund. A creation unit is a basket of securities traded on a particular exchange that are assembled and repackaged as a single share of the exchange-traded fund.

creation unit

The minimum number of shares of an exchange-traded fund, usually between 25,000 to 300,000, that will be delivered to authorized participants in exchange for the predefined basket of securities underlying the fund's securities. Creations and redemptions occur at end-of-day net asset values.

Creation unit.

A creation unit is a basket of securities that corresponds to a specific number of shares in an exchange traded fund (ETF). The securities in the creation unit are those that are included in the ETF's underlying index.

An authorized participant in an ETF -- typically an institutional investor -- assembles the relevant basket of securities and transfers that creation unit to the ETF sponsor in exchange for fund shares, which can then be sold to other investors.

References in periodicals archive ?
The Funds will cease trading at the end of the trading day on October 8, 2015, no new creation units will be sold for any Fund after that time, and each Fund will liquidate on or around October 22, 2015.
DE), has said that effective immediately, the creation limit for Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (NYSE ARCA: ASHR) will increase from the previous limit of one creation unit per day to five creation units per day.
Sponsors continually create and redeem creation units based on investor demand and for arbitrage purposes.
Instead, certain financial institutions known as authorized participant (AP) purchase and redeem ETF shares directly from the ETF in creation units.
Furthermore, Eisai has concentrated all functions aimed at possible developments in this field, from biomarker discovery research to companion diagnostics development, into its Biomarker and Personalized Medicine Core Function Unit, and through collaborations with other drug creation units such as its Oncology Product Creation unit, is continuing endeavors toward further realizing personalized medicine.
Shares, other than Creation Units, may be sold only through a broker and may be subject to brokerage commissions.
The daily tracking includes such data points as expense ratios, total net assets, NAV price, market price, minimum creation units, security holdings and much more.
Creation Units are issued and redeemed principally in-kind for securities included in a specified index.
Only broker-dealers or large institutional investors with creation and redemption agreements, called authorized participants ("APs"), can purchase or redeem these Creation Units.
As a practical matter, only institutions or large investors purchase or redeem Creation Units.
DALLAS, July 14 /PRNewswire/ -- Esposito Securities is proud to be seeding its first ETF with 2 creation units totaling $2.
5mm composed of two creation units totaling 100,000 shares and an initial price of $25.