Sentences with phrase «redeem creation units»

Only an Authorized Participant may create or redeem Creation Units directly with the fund.

The ability to purchase and redeem creation units gives ETFs an arbitrage mechanism intended to minimize the potential deviation between the market price and the net asset value of ETF shares.

Only an Authorized Participant may create or redeem Creation Units directly with the Fund.

Higher and more uncertain costs to create and redeem Creation Units generally translate into higher trading costs for buyers and sellers of NextShares.

Authorized Participants may purchase and redeem Creation Units both for their own accounts and for customers.

Validly submitted orders to purchase and redeem Creation Units are accepted from Authorized Participants until the close of regular trading on the New York Stock Exchange, generally 4:00 pm eastern time, on the business day that the order is placed.

Some NextShares funds may issue and redeem Creation Units entirely in cash on an ongoing daily basis.

Also like ETFs, NextShares issue and redeem Creation Units of shares at NAV, plus or minus a transaction fee that is intended to offset the estimated cost to the fund of processing the transaction and converting the transferred Basket instruments to or from the desired composition.

The ability to issue and redeem Creation Units enables NextShares funds to expand and contract in response to changes in investor demand.

Only an Authorized Participant may create or redeem Creation Units directly with the Fund.

Only a Participating Dealer may create or redeem Creation Units directly with the ETF.

Each Business Day, Fund portfolio holdings information will be provided to the Distributor or other agent for dissemination through the facilities of the NSCC and / or other fee - based subscription services to NSCC members and / or subscribers to those other fee - based subscription services, including Authorized Participants, and to entities that publish and / or analyze such information in connection with the process of purchasing or redeeming Creation Units or trading shares of the Fund in the secondary market.

The fees charged by NextShares funds and ETFs to Authorized Participants and other investors purchasing and redeeming Creation Units.

Instead, the premium or discount to NAV at which share prices are quoted and transactions execute will vary depending on market factors then in effect, including the balance of supply and demand for shares among investors, transaction fees and other costs in connection with purchasing and redeeming Creation Units of shares, the cost and availability of borrowing shares, competition among market makers, the share inventory positions and inventory strategies of market makers, the profitability requirements and business objectives of market makers, and the volume of share trading.

Other costs of purchasing and redeeming Creation Units include the commissions paid to buy or sell Basket instruments and the variance between the aggregate price paid to buy or sell Basket instruments and their value reflected in NAV.

The purpose of transaction fees is to protect the fund's shareholders from the dilutive costs associated with issuing and redeeming Creation Units.

Not exact matches

RSX issues and redeems shares at NAV only in a large specified number of shares, each called a «Creation Unit,» or multiples thereof.

This is where you have to get into the Creation and Redemption unit construct of the exchange - traded fund where there are «in - kind» transactions done to either create new shares of the fund or redeem out shares of the fund.

However, shares are not individually redeemable, and may only be redeemed directly from the Fund by Authorized Participants, in very large creation / redemption units.

NextShares funds issue and redeem shares only in specified creation unit quantities in transactions by or through authorized participants.

However, shares are not individually redeemable from the ETFs and may only be purchased and redeemed directly from the ETFs by Authorized Participants, in very large creation / redemption units.

Like ETFs, exchange - traded managed funds may issue and redeem shares in Creation Unit quantities on a daily basis.

NextShares funds issue and redeem shares only in specified creation unit quantities in transactions by or through Authorized Participants.

Transaction fees may include fixed amounts per creation or redemption event, amounts varying with the number of Creation Units purchased or redeemed, and amounts varying based on the time an order iscreation or redemption event, amounts varying with the number of Creation Units purchased or redeemed, and amounts varying based on the time an order isCreation Units purchased or redeemed, and amounts varying based on the time an order is placed.

Among other matters, exemptive relief is required to permit NextShares to trade on an exchange and to redeem shares only in Creation Units aggregations.

Like ETFs, NextShares issue and redeem shares in Creation Unit quantities in transactions by or through Authorized Participants.

NextShares funds may issue and redeem shares in Creation Unit quantities on a daily basis.

If a market maker can purchase NextShares in the secondary market at a discount to NAV that exceeds the cost of redeeming, it need only accumulate enough individual shares to constitute a Creation Unit to redeem the position at a profit.

Under the SEC proposal, an ETF would be defined as a registered open - end management investment company that: • Issues (or redeems) creation units in exchange for the deposit (or delivery) of basket assets the current value of which is disseminated per share by a national securities exchange at regular intervals during the trading day; • Identifies itself as an ETF in any sales literature; • Issues shares that are approved for listing and trading on a securities exchange; • Discloses each business day on its publicly available web site the prior business day's net asset value and closing market price of the fund's shares, and the premium or discount of the closing market price against the net asset value of the fund's shares as a percentage of net asset value; and • Either is an index fund, or discloses each business day on its publicly available web site the identities and weighting of the component securities and other assets held by the fund.

Instead, financial institutions purchase and redeem ETF shares directly from the ETF, but only in large blocks, varying in size by ETF from 25,000 to 200,000 shares, called «creation units».

Purchases and redemptions of the creation units generally are in kind, with the institutional investor contributing or receiving a basket of securities of the same type and proportion held by the ETF, although some ETFs may require or permit a purchasing or redeeming shareholder to substitute cash for some or all of the securities in the basket of assets.

Shares are not individually redeemable from the ETF, however, shares may be redeemed directly from an ETF by Authorized Participants, in very large creation / redemption units.

However, shares may only be redeemed directly from a Fund by Authorized Participants, in very large creation / redemption units.

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.

Shares are not individually redeemable from the Fund, however, Shares may be redeemed directly from a Fund by Authorized Participants, in very large creation / redemption units.