The Story of ETF Creation and Redemption iShares by BlackRock

Ever wonder what allows ETFs to be liquid? The answer is creation and redemption, the process that lets ETFs trade even when volume is low. Using simple .

Ever wonder what allows ETFs to be liquid? The answer is creation and redemption, the process that lets ETFs trade even when volume is low. Using simple .

Ever wonder what allows ETFs to be liquid? The answer is creation and redemption, the process that lets ETFs trade even when volume is low. Using simple .

[sgtecelica]

Thank you for explaining it in terms even an ape can understand it

[jt]

If I understand right, ETFs can be traded in bulk (as ETFs) or be traded as the individual stocks that make up the ETFs.

[mikestaub]

Seems very easy to manipulate the market with this system. We have to trust the broker auditors to monitor the ETF flows?

[budhadityadebnath]

I really don't understand.. .why can't the best of books explain things this simply

[smokeymonjes]

The sound is completely distorted! I didnt get to hear any of it!

[sampat]

At 4:00... you say that the market maker delivers to the AP all the flowers that make up the bouquet, but I thought the market marker did not have all the flowers in the first place.

[phtephenjumptoconclusionsq]

"increase liquidity" = naked shorting

[MilesS-vrce]

What happens when the ETF (bouquet) holds something illiquid (eg rare/ugly flower that is difficult to find/sell)? The investor is made whole by the market maker and it's up to the market maker to unwind the illiquid position over time (for redemption) or what?

[szlampy]

The real question: What if there's more bundles in existence than individual shares that have been issued by the company?

[mmadman]

INFINITE LIQUIDITY. This is how market makers abuse low liquidity stocks

[Kratorious]

The audio is garbled...is this happening for anyone else?!?

[jiti]

If there is limited no of shares available and then if ETF demand increases where can one "Create " extra shares? sorry lost you there!

[camo]

Does the flexible nature of the supply of etfs have anything to do with the supposed bubble? I’m worried that these market makers and APs have the power to do some shady practices when bundling these securities. If the demand of etfs go through the roof, would they be incentivised to just start bundling a bunch of rotten flowers together and sell them off when they can’t find good flowers?

[finishtheshowmon]

Holdup, if etf supply is pliable and orders do not affect the price, what good is shorting etfs?

[qiannivan]

OH MY GOD. He literally dragged the f**k out of me for 47 seconds to start the f**k of explaining how ETF is created.

[ThomasSorensen]

What's up with this, comments indicate it was a good video but the audio is totally garbled and almost silent, impossible to understand....as of 7-14-21

[liswob]

How does the process look like for synthetic ETFs?

[robble]

Sneering has happened to the audio. You can barely hear garbled voices.

[neuron]

this was too broad... :/ want icecream? :D

[wealthsmart]

yeah you botched the hell out of this explanation...