Sentences with phrase «creation and redemption mechanism»

Worth reading up about the creation and redemption mechanism (here is a good place to start) to understand the exact way this happens in ETFs as it's very key to how they work.

Second, the in - kind creation and redemption mechanism at the center of every ETF allows most ETFs to continually cleanse their portfolios of positions with embedded capital gains.

Grayscale's solution is to create an ETF version of their existing model, which will include the creation and redemption mechanism vital to the success of ETFs.

The creation and redemption mechanisms help ETF shares trade at a price close to the market value of their underlying assets.

Not exact matches

Plus, should premiums and discounts ever grow too large, ETFs have a built - in mechanism to realign prices with value through the creation / redemption process and the authorized participants that drive it.

The other key benefit of the creation / redemption mechanism is that it's an extraordinarily efficient and fair way for funds to acquire new securities.