All IB LLC institutional clients who clear trades on our platform are eligible to request ETF creation and redemption.
The process of creating and redeeming ETFs at Interactive Brokers is simple and straightforward. The unit of ETF creation/redemption is set by each respective ETF issuer, with each unit containing anywhere from 25,000 to 100,000 shares of an ETF (see chart below). Creations and redemptions settle on a T+3 cycle basis.
Sends ETF Component
ETF (x units)
IB clients is long components, buys the component(s), or short position is created.
IB Cleared Institutional client
IB client is long the ETF, buys the ETF, ora short position is created.
IB Cleared Institutional client
In the creation process, IB must deliver the underlying stock components to the ETF issuer. If the client account is currently holding the components, then IB will deliver them to the issuer. If the client account does not currently hold the components, then IB will borrow them on the client's behalf. The redemption process works in reverse.
To initiate the process of ETF creation/redemption, create a ticket through Account Management call IB Client Service and navigate to the Phone Orders menu option and submit your request in writing. Requests for equity ETFs must be submitted to IB by 3:30 PM EST to accommodate the ETF issuer deadline of 4:00 PM EST (or earlier in the event of abbreviated exchange hours). Requests for fixed income ETFs will vary. Customers should refer to the Create Equity and Fixed Income ETFs details for information.
IB currently offers 41 ETFs held by four issuers. If the ETF you want to create is not one of those 41, we will determine whether to request the creation from one of our issuers on a case by case basis. Contact your IB Sales Representative for more information on creating ETFs that are not included in the list of 41 ETFs below.
IB customers may not execute an ETF redemption if such ETF redemption results in a short position for that ETF.
Note: Once you submit the ETF creation or redemption, the transaction is irrevocable and you will be unable to cancel your request.
|Symbol||Product Name||Shares per Creation Unit||Fixed Creation Fee|
|IBB||iShares Nasdaq Biotechnology||50,000||USD 300|
|IWM||iShares Russell 2000||50,000||USD 3,000|
|XLY||Consumer Discretionary Select Sector||50,000||USD 500|
|XLP||Consumer Staples Select Sector||50,000||USD 500|
|XLE||Energy Select Sector||50,000||USD 500|
|XLF||Financial Select Sector||50,000||USD 500|
|XLV||Health Care Select Sector||50,000||USD 500|
|XLI||Industrial Select Sector||50,000||USD 500|
|XLB||Materials Select Sector||50,000||USD 500|
|XLK||Technology Select Sector||50,000||USD 500|
|XLU||Utilities Select Sector||50,000||USD 500|
|DIA||SPDR Dow Jones Industrial Average||50,000||USD 1,000|
|SPY||SPDR S&P500||50,000||USD 3,000|
|MDY||SPDR S&P MidCap 400||25,000||USD 3,000|
|VTI||Vanguard Total Stock Market||100,000||USD 500|
|VUG||Vanguard Growth||25,000||USD 500|
|QQQ||Powershares QQQ Trust Series 1||50,000||USD 1,000|
|QMOM||Momentumshares US Quantitative Momentum||50,000||USD 250|
|QVAL||ValueShares US Quantitative Value||50,000||USD 250|
|Symbol||Product Name||Shares per Creation Unit||Creation Fee|
|BOND||PIMCO Total Return Active||50,000||USD 0 + .050%1|
|LDUR||PIMCO Low Duration Active||50,000||USD 0 + 0%1|
|MINT||PIMCO Enhanced Short Maturity Active||70,000||USD 0 + 0%1|
|ILB||PIMCO Global Advantage Inflation-Linked Bond Active||100,000||USD 0 + .200%1|
|DI||PIMCO Diversified Income Active||100,000||USD 0 + .100%1|
|SMMU||PIMCO Short Term Municipal Bond Active||50,000||USD 0 + .050%1|
|MUNI||PIMCO Intermediate Municipal Bond Active||50,000||USD 0 + .050%1|
|STPZ||PIMCO 1-5 Year U.S. TIPS Index||50,000||USD 0 + .350%1|
|TIPZ||PIMCO Broad U.S. TIPS Index||50,000||USD 0 + .350%1|
|LTPZ||PIMCO 15+ Year U.S. TIPS Index||50,000||USD 0 + .350%1|
|TUZ||PIMCO 1-3 Year U.S. Treasury Index||50,000||USD 0 + .050%1|
|ZROZ||PIMCO 25+ Year Zero Coupon U.S. Treasury Index||50,000||USD 0 + .350%1|
|CORP||PIMCO Investment Grade Corporate Bond Index||50,000||USD 0 + .350%1|
|HYS||PIMCO 0-5 Year High Yield Corporate Bond Index||50,000||USD 0 + .050%1|
|BAB||PowerShares Build America Bond Portfolio||50,000||USD 500 + .250%1|
|BKLN||PowerShares Senior Loan Portfolio||100,000||USD 500 + .050%1
(1-9 units. 10+ = actuals with max. 2.00%)
|DSUM||PowerShares Chinese Yuan Dim Sum Bond Portfolio||50,000||USD 500 + .500%1|
|PICB||PowerShares International Corporate Bond Portfolio||50,000||USD 500 + .250%1|
|PVI||PowerShares VRDO Tax Free Weekly Portfolio||50,000||USD 500 + 0%1|
|PWZ||PowerShares California AMT-Free Municipal Bond Portfolio||50,000||USD 500 + .250%1|
|PZA||PowerShares National AMT-Free Municipal Bond Portfolio||50,000||USD 500 + .250%1|
|PZT||PowerShares New York AMT-Free Municipal Bond Portfolio||50,000||USD 500 + .250%1|