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 creation unit is the denomination of underlying assets that can be redeemed for a certain number of ETF shares.

Creation units can vary in size; with most containing between 25,000 and 600,000 ETF shares each. The use of creation units in the construction of ETF shares is critical because they allow for the representation of the underlying assets - the ETF shares, which represent a tiny chunk of a creation share - to be traded intraday. The ability to trade ETFs on an exchange gives them a significant advantage over comparable investment vehicles, such as mutual funds.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Unit Colour Patch — Unit Colour Patches (or simply known as Colour Patches) are worn on the Slouch Hat in the Australian Army to indicate which unit they are from. While some are recent creations many date back to World War I, when on 8 March, 1915 1 Division Order… …   Wikipedia

  • Unit 731 — The Unit 731 complex Location Pingfang Coordinates …   Wikipedia

  • CRÉATION LITTÉRAIRE — Toutes les démarches de notre pensée occidentale et de nos analyses sont menacées, depuis des siècles, par la simplification dualiste des problèmes et par l’effort de réduction moniste des solutions. On commence – sinon depuis Aristote, du moins… …   Encyclopédie Universelle

  • CRÉATION - La création dans les synthèses philosophico-religieuses — Les spéculations, philosophiques ou théologiques, sur les «origines» sont à la fois en rupture et en continuité avec les mythes cosmogoniques. Elles s’en écartent par deux traits majeurs: accentuation du rationnel; réflexion sur l’idée de… …   Encyclopédie Universelle

  • Unit Interventie Mariniers — BBE redirects here. For other uses, see BBE (disambiguation). Unit Interventie Mariniers Active February 22, 1973 Present Country Netherlands Branch Marine Corps Type Maritime …   Wikipedia

  • Unit testing — In computer programming, unit testing is a method by which individual units of source code are tested to determine if they are fit for use. A unit is the smallest testable part of an application. In procedural programming a unit may be an… …   Wikipedia

  • Unit Trust — Der Unit Trust ist eine Form des kollektiven Investments auf Basis eines Treuhandverhältnisses (trust deed). Im Unit Trust Statut (siehe auch Fondsprospekt) sind die wichtigsten Regeln festgelegten. Unit Trusts werden in Australien, Irland, der… …   Deutsch Wikipedia

  • Unit trust — A unit trust is a form of collective investment constituted under a trust deed.Found in Australia, Ireland, the Isle of Man, Jersey, New Zealand, South Africa, Singapore [Lee, Boon Keng and Ong, Andy. Personal Financial Planning in Singapore. INS …   Wikipedia

  • Unit of account — A unit of account is a standard monetary unit of measurement of value/cost of goods, services, or assets. It is one of three well known functions of money. It lends meaning to profits, losses, liability, or assets. The accounting monetary unit of …   Wikipedia

  • Unit (album) — Infobox Album | Name = Unit Type = Album Artist = Regurgitator Released = November 1997 Unit October 19, 1998 Re Booted Recorded = The Dirty Room , Brisbane Australia, in 1997 Genre = Pop / Alternative rock Length = 36:17 Unit 50:50 Re Booted… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.