Balancing Act: ETF Share Creation & Redemption

We describe how ETF share creation and redemption mechanism works and the market participants involved in the process.

Why have investors embraced ETFs? In large part, it’s because of their ability to mitigate costs, their transparency and intraday trading. A process that takes place behind the scenes without any buyer or seller involvement—ETF share creation and redemption— is the key to unlocking these benefits.