Minimum number of securities or shares that make up one "unit" of a fund. A creation unit is normally 25,000 to 300,000 shares of an exchange-traded fund (ETF). Trading of ETFs on an exchange gives them a slight advantage over similar investments, like mutual funds.
Related information about creation unit:
- Creation Unit Definition | Investopedia
A set of shares or securities that makes up one unit of a fund held by the trust that underlies an exchange-traded fund (ETF). One creation unit is the ...
- What is the ETF Creation/Redemption Mechanism?
In exchange, the provider gives the AP a block of equally valued ETF shares, called a creation unit. These blocks are usually formed in 50,000-share chunks ...
- Creation Unit
Creation Unit - Definition for Creation Unit from Morningstar - The smallest block of ETF shares that can be bought or sold from the fund company at net asset ...
- Creation Unit - Financial Dictionary - The Free Dictionary
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 ...
- Exchange-Traded Funds (ETFs)
Mar 18, 2010 ... After purchasing a Creation Unit, an investor often splits it up and sells the individual shares on a secondary market. This permits other ...
- Why ETFs Are a Scam - Seeking Alpha
Jun 5, 2009 ... Each Creation Unit is what is used to deliver an ETF share to the market. And, each share of an ETF actually is just a share in the underlying ...
- ETFs Glossary
Creation Unit: The unit size aggregation in which an Authorized Participant can create or redeem ETF shares with the fund or trust. The creation unit size can ...
- Creation Unit: Definition from Answers.com
Creation Unit A set of shares or securities that makes up one unit of a fund held by the trust that underlies an exchange-traded fund (ETF). One.