How does the creation/redemption process of Lyxor ETF DJ Euro Stoxx 50 work?
Shares in Lyxor ETF DJ Euro Stoxx 50 can be bought or sold in the same way as any other shares at Euronext Paris, through any stockbroker, e-broker or bank. The primary market for trackers is a mechanism that allows investors to create or redeem shares in the fund at the net asset value on any trading day. Shares in Lyxor ETF DJ Euro Stoxx 50 can be created and redeemed in exchange for the basket of shares that makes up the Dow Jones EURO STOXX 50SM index or for cash, but only if a very large amount of money is involved. Creation and redemption is subject to commission, and orders must involve large blocks of at least 500 times the Dow Jones EURO STOXX 50SM index. This corresponds to 50,000 shares in the fund, which is worth approximately 2.5 million euro. Newly created shares can then be traded on the stock exchange at a price close to their net asset value.
