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In-kind creation or redemption refers to a process used in the operation of exchange-traded funds (ETFs) to manage their underlying portfolios. This process involves the transfer of securities or other assets directly between the ETF and its authorized participants (APs), rather than through cash transactions. In-kind creation occurs when an ETF creates new shares by exchanging a basket of underlying securities with an AP. The AP delivers the basket of securities to the ETF in exchange for newly created ETF shares. This process is used to add liquidity to the ETF and increase its size. In-kind redemption, on the other hand, occurs when an AP returns a basket of ETF shares to the ETF in...