ETF distributors only buy or sell ETFs instantly from or to authorized individuals, that are massive broker-dealers with whom they have entered into agreements-and then, only in creation items, that are giant blocks of tens of hundreds of ETF shares, normally exchanged in-type with baskets of the underlying securities. Instead, financial institutions buy and redeem ETF shares directly from the ETF, however solely in massive blocks (reminiscent of 50,000 shares), called creation units.
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