IBKR will facilitate the ETF creation and redemption process for you with ETF issuers.
ETF creation and redemption offers IBKR Pro clients the following benefits:
Eligibility
All Interactive Brokers LLC institutional clients who clear trades on our platform are eligible to request ETF creation and redemption. Simply contact us to start the process.
How to Create and Redeem ETFs at IBKR
To create an ETF, you can do one of the following:
To redeem an ETF:
During the creation process, IBKR must deliver the underlying stock components to the ETF issuer. If the account is currently holding the components, then IBKR will deliver them to the issuer. If the account does not currently hold the components, then IBKR will borrow them on the client's behalf. The redemption process works in reverse.
To initiate the process of ETF creation/redemption, please create a ticket. Requests for equity ETFs must be submitted to IBKR by 3:00 PM EST to accommodate ETF issuer deadlines of 4:00 PM EST. Certain ETFs have earlier deadlines. Cut-off times for fixed income ETFs vary.1
Note: Once you submit the ETF creation or redemption order, the transaction is irrevocable and you will be unable to cancel your request.
A selection of ETFs for which IBKR accepts orders is at the bottom of the page. IBKR may accept orders for ETFs which are not on the list and are issued by:
Please contact your Sales representative or support for details.
Mechanics of 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 the ETF issuer, with each unit containing anywhere from 10,000 to 100,000 shares of an ETF (see chart below). Creations and redemptions settle on a T+2 cycle basis.
Creation process for ETFs with in-kind settlement
Trade Date
Settlement Date
Issuer
Sends ETF
Sends ETF Component
Shares Electronically
Electronically
Provides ETF
Requests an
ETF (x units)
IBKR clients is long components, buys the component(s),
or short position is created.
IBKR Cleared Institutional client
Issuer
ETF Sends
Component Shares
Sends ETF
Electronically Provides
Component Shares
Redemption Request
IBKR client is long the ETF, buys the ETF, or
a short position is created.
IBKR Cleared Institutional client
The redemption process is the opposite of the creation process.
Trade Date
Settlement Date
Creation and redemption process for cash settled ETFs
Costs
ETFs Available to Create and Redeem
Equity
Symbol | Name | Shares per Unit |
---|---|---|
SPY | SPDR S&P 500 ETF Trust | 50,000 |
DIA | SPDR Dow Jones Industrial Average | 50,000 |
MDY | SPDR S&P MidCap 400 | 25,000 |
XLY | Consumer Discretionary Select Sector SPDR | 50,000 |
XLP | Consumer Staples Select Sector SPDR | 50,000 |
XLE | Energy Select Sector SPDR | 50,000 |
XLF | Financial Select Sector SPDR | 50,000 |
XLV | Health Care Select Sector SPDR | 50,000 |
XLI | Industrial Select Sector SPDR | 50,000 |
XLB | Materials Select Sector SPDR | 50,000 |
XLK | Technology Select Sector SPDR | 50,000 |
XLU | Utilities Select Sector SPDR | 50,000 |
QQQ | Invesco QQQ Trust Series 1 | 50,000 |
IWM | iShares Russell 2000 | 50,000 |
IBB | iShares Biotechnology | 50,000 |
VTI | Vanguard Total Stock Market Index | 100,000 |
VUG | Vanguard Growth Index | 25,000 |
BOXX | Alpha Architect 1-3 Month Box | 10,000 |
QMOM | Alpha Architect US Quantitative Momentum | 10,000 |
QVAL | Alpha Architect US Quantitative Value | 10,000 |
VMOT | Alpha Architect Value Momentum Trend | 10,000 |
Fixed Income
Symbol | Name | Shares per Unit |
---|---|---|
BOND | PIMCO Total Return Active | 20,000 |
CORP | PIMCO Investment Grade Corporate Bond Index | 50,000 |
HYS | PIMCO 0-5 Year High Yield Corporate Bond Index | 50,000 |
STPZ | PIMCO 1-5 Year U.S. TIPS Index | 50,000 |
LTPZ | PIMCO 15+ Year U.S. TIPS Index | 50,000 |
ZROZ | PIMCO 25+ Year Zero Coupon U.S. Treasury Index | 50,000 |
TIPZ | PIMCO Broad U.S. TIPS Index | 50,000 |
MINT | PIMCO Enhanced Short Maturity Active | 70,000 |
LDUR | PIMCO Enhanced Low Duration Active | 20,000 |
SMMU | PIMCO Short Term Municipal Bond Active | 20,000 |
MUNI | PIMCO Intermediate Municipal Bond Active | 20,000 |
PICB | Invesco International Corporate Bond | 50,000 |
BKLN | Invesco Senior Loan | 100,000 |
PVI | Invesco Floating Rate Municipal Income | 50,000 |
PWZ | Invesco California AMT-Free Municipal Bond | 50,000 |
PZA | Invesco National AMT-Free Municipal Bond | 50,000 |
PZT | Invesco New York AMT-Free Municipal Bond | 50,000 |
Disclosures