Creation Unit
The minimum block size in which an authorized participant (AP) exchanges underlying securities for ETF shares with the issuer (or vice versa). Typically 25,000 to 100,000 ETF shares -- 50,000 is the most common. The block size is large enough that retail investors never transact at this level, but small enough that institutional APs can react quickly to even modest NAV mispricings. The creation-unit threshold is the operational boundary between the secondary market (where retail trades) and the primary market (where APs and the issuer transact).
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Active Management · Active Share · AI Revenue · Anchoring Bias · Cost of Capital · Days to Cover
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