Sentences with phrase «called authorized participants»

Only so - called authorized participants (typically, large institutional investors) actually buy or sell shares of an ETF directly from or to the fund manager, and then only in creation units, large blocks of tens of thousands of ETF shares, which are usually exchanged in - kind with baskets of the underlying securities.

The underlying securities that form the index actually come from folks who are called Authorized Participants (basically a market maker or a large institutional investor who has access to large amounts of those securities).

When market makers and other large investors accumulate sufficient shares of a NextShares fund, they can redeem their shares from the fund by transacting through intermediaries called Authorized Participants.

When an ETF company wants to create new shares of its fund, whether to launch a new product or meet increasing market demand, it turns to someone called an authorized participant (AP).

Not exact matches

These seemingly opposite interests in ETFs make for a large and lucrative market not just for the ETF operators like BlackRock's iShares and State Street Global Advisors SPDRs, but also for the authorized participants — institutions that can create or redeem large blocks of new shares in an ETF (called creation units) for sale, and countless brokers that profit by trading ETF shares.

Large financial institutions called «Authorized Participants», or «APs», partner with an ETF provider such as iShares.