Authorized Participants
Authorized participants are institutions that create and redeem ETF shares by exchanging baskets of securities or cash with the fund.
ETF, ETP, authorized participant, creation-redemption, tracker fund, smart beta, HOLDR, and zombie ETF terms.
ETF Structure, Creation, and Trading terms describe exchange-traded funds, index products, ETF trading mechanics, creation and redemption, and specialized exchange-traded exposures.
Use this branch when the fund trades on an exchange or tracks an index, commodity, currency, sector, country, leveraged, inverse, or specialty exposure.
| Term | Use it for |
|---|---|
| Authorized Participants | An ETF or exchange-traded product term tied to structure, exposure, trading, or index tracking. |
| Exchange-Traded Fund | An ETF or exchange-traded product term tied to structure, exposure, trading, or index tracking. |
| Exchange-Traded Product (ETP) | An ETF or exchange-traded product term tied to structure, exposure, trading, or index tracking. |
| Holding Company Depository Receipt (HOLDR) | A fund structure, regulation, pooled-vehicle, or investment-company term. |
| Smart Beta ETF | An ETF or exchange-traded product term tied to structure, exposure, trading, or index tracking. |
| Tracker Fund | An ETF or exchange-traded product term tied to structure, exposure, trading, or index tracking. |
| Zombie ETF | An ETF or exchange-traded product term tied to structure, exposure, trading, or index tracking. |
Check index methodology, holdings, creation and redemption process, bid-ask spread, premium or discount, tracking difference, leverage or inverse reset terms, and tax treatment.
This page is educational and does not recommend a specific fund, security, tax treatment, or account choice.
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Authorized participants are institutions that create and redeem ETF shares by exchanging baskets of securities or cash with the fund.
Pooled investment fund that trades on an exchange like a stock while holding a diversified portfolio of underlying assets.
An exchange-traded product is a listed investment vehicle that trades on an exchange and tracks assets, indexes, or strategies.
A Holding Company Depository Receipt was an exchange-traded basket of stocks giving investors concentrated sector or industry exposure.
A smart beta ETF tracks rules-based factors or weighting methods instead of traditional market-cap index weighting.
A tracker fund seeks to replicate the performance of a benchmark index or market segment rather than outperform it.
A zombie ETF is a thinly traded exchange-traded fund with low assets, weak demand, and elevated closure risk.