creation unit

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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
To help create breakthrough new treatments that fulfil unmet medical needs, Eisai has established Product Creation Units (PCUs) to match our key franchise areas.
to purchase newly minted creation units from the fund based on the
Thereafter, no orders for new creation units will be accepted after the close of business on the business day before the liquidation date and trading in its shares will stop before the market open on the liquidation date.
FTP is also a distributor of mutual fund shares and exchange-traded fund creation units.
FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.
As part of the A+E Digital International initiative, the digital studio in Singapore comprises full-service, integrated creative and content creation units that will focus on producing original, premium short- and mid-form digital content assets, themed around the network's brands and its partners.
Part of this rule includes a new form (N-CEN) that will require ETFs to provide details on their exchange listing, listing of authorized participants and activity, information about creation units, and transaction fees.
As R&D has become more distributed, IRI has evolved along with it, creating new ways to serve the new value creation units emerging in member companies.
As has been seen across the world, MSMEs are the job creation units of a country - be it the Mittelstand in Germany or the Small Business Administration in USA.
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.
Advisors who value transparency, operational efficiency and liquidity also have the ability to work with trading desks to aggregate their client trades through a market maker and potentially obtain an execution via new ETF creation units. ETFs enhance day-to-day risk analysis capabilities.