Key terms
Understanding a few key terms will make it easier to navigate what is sometimes a complex ETF process.
Asset servicing provider
The organization that performs various administrative functions in creating and redeeming ETF units
Authorized participant
A large financial institution that has the right to create and redeem ETF units
Creation/redemption basket
The securities, share quantities and cash that the authorized participant would need to deliver to/receive from the issuer in creating or redeeming ETF units on the next trading day; mirrors a slice of the ETF portfolio and represents a prescribed number of units (PNUs) in the fund (e.g., block of 25,000 units)
Issuer
The fund management company that creates, sells and markets an ETF
Portfolio Composition File
The creation/redemption basket for the next trading day
Primary market
The mechanism whereby new ETF units are created, and existing units are redeemed by the authorized participant
Secondary market
The market in which investors buy and sell ETFs
Frequently asked questions 
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