Ever wonder what allows ETFs to be liquid? The answer is ”creation and redemption,” the process that lets ETFs trade even when volume is low.
Using simple illustrations and a metaphor about flowers, this seven-minute animation will change the way you look at ETFs.
The Story of ETF Creation and Redemption – iShares by BlackRock explained by flowers
https://youtu.be/frhETwLl-xQ
BlackRock, Inc. is an American global investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock is the world’s largest asset manager with $5.1 trillion in assets under management.
BlackRock operates globally with 22 investment centers, 70 offices in 30 countries and clients in 100 countries.[5] Due to its power, Blackrock has been called the world’s largest shadow bank.
