News for hackers. Stuff that matters.

A comment on Individual Investors Get Burned by Collapse of Complex Securities. Parent comment

Re:Individual Investors Get Burned by Collapse of Complex Se... by centimeter on Monday June 01, 2020 @05:08PM (#23383830)
An ETF is by definition something that can be created or redeemed. If it can't be created or redeemed, then it's an ETN, which is completely different.

Leveraged ETFs are usually composed of debt plus equity, and they can certainly be created and redeemed.

You personally cannot create or redeem any ETF, because the quantities involved are huge and you need to be what's called an "authorized participant".

[ Parent | on HN ]
Re:Individual Investors Get Burned by Collapse of Complex Se... by haltingproblem on Monday June 01, 2020 @06:14PM (#23384626)
Any hedge fund or market participant of decent size (by volume) can access the create/redeem market through their trading desk or prime broker. Create/redeem is a pain for the clearing broker as they have move cash/securities around but if you give them enough business they will do it for you.
[ Parent | on HN ]