diff --git a/modules/schematics/src/effect/files/__name@dasherize@if-flat__/__name@dasherize__.effects.ts.template b/modules/schematics/src/effect/files/__name@dasherize@if-flat__/__name@dasherize__.effects.ts.template
index 09e7ebfcc3..9fc4ea7b35 100644
--- a/modules/schematics/src/effect/files/__name@dasherize@if-flat__/__name@dasherize__.effects.ts.template
+++ b/modules/schematics/src/effect/files/__name@dasherize@if-flat__/__name@dasherize__.effects.ts.template
@@ -1,5 +1,5 @@
 import { Injectable } from '@angular/core';
-import { Actions, Effect<% if (feature) { %>, ofType<% } %> } from '@ngrx/effects';
+import { Actions, <% if (effectCreator) { %>createEffect<% } else { %>Effect<% } %><% if (feature) { %>, ofType<% } %> } from '@ngrx/effects';
 <% if (feature && api) { %>import { catchError, map, concatMap } from 'rxjs/operators';
 import { EMPTY, of } from 'rxjs';
 import { Load<%= classify(name) %>sFailure, Load<%= classify(name) %>sSuccess, <%= classify(name) %>ActionTypes, <%= classify(name) %>Actions } from '<%= featurePath(group, flat, "actions", dasherize(name)) %><%= dasherize(name) %>.actions';
@@ -11,7 +11,7 @@ import { <%= classify(name) %>ActionTypes, <%= classify(name) %>Actions } from '
 
 @Injectable()
 export class <%= classify(name) %>Effects {
-<% if (feature && api) { %>
+<% if (feature && api && !effectCreator) { %>
   @Effect()
   load<%= classify(name) %>s$ = this.actions$.pipe(
     ofType(<%= classify(name) %>ActionTypes.Load<%= classify(name) %>s),
@@ -22,7 +22,7 @@ export class <%= classify(name) %>Effects {
         catchError(error => of(new Load<%= classify(name) %>sFailure({ error }))))
     )
   );<% } %>
-<% if (feature && !api) { %>
+<% if (feature && !api && !effectCreator) { %>
   @Effect()
   load<%= classify(name) %>s$ = this.actions$.pipe(
     ofType(<%= classify(name) %>ActionTypes.Load<%= classify(name) %>s),
@@ -35,4 +35,22 @@ export class <%= classify(name) %>Effects {
 <% } else { %>
   constructor(private actions$: Actions) {}
 <% } %>
+
+<% if (feature && api && effectCreator) { %>
+  load<%= classify(name) %>s$ = createEffect(() => this.actions$.pipe(
+    ofType(<%= classify(name) %>ActionTypes.Load<%= classify(name) %>s),
+    concatMap(() =>
+      /** An EMPTY observable only emits completion. Replace with your own observable API request */
+      EMPTY.pipe(
+        map(data => new Load<%= classify(name) %>sSuccess({ data })),
+        catchError(error => of(new Load<%= classify(name) %>sFailure({ error }))))
+    )
+  ));<% } %>
+
+<% if (feature && !api && effectCreator) { %>
+  load<%= classify(name) %>s$ = createEffect(() => this.actions$.pipe(
+    ofType(<%= classify(name) %>ActionTypes.LoadMyTestFeatures),
+    concatMap(() => EMPTY)
+  ));
+<% } %>
 }
diff --git a/modules/schematics/src/effect/index.spec.ts b/modules/schematics/src/effect/index.spec.ts
index 909cae69fe..20fdf2701c 100644
--- a/modules/schematics/src/effect/index.spec.ts
+++ b/modules/schematics/src/effect/index.spec.ts
@@ -27,6 +27,7 @@ describe('Effect Schematic', () => {
     feature: false,
     root: false,
     group: false,
+    effectCreator: false,
   };
 
   const projectPath = getTestProjectPath();
@@ -316,4 +317,41 @@ describe('Effect Schematic', () => {
       /constructor\(private actions\$: Actions<FooActions>\) {}/
     );
   });
+
+  it('should create an effect using creator function', () => {
+    const options = { ...defaultOptions, effectCreator: true, feature: true };
+
+    const tree = schematicRunner.runSchematic('effect', options, appTree);
+    const content = tree.readContent(
+      `${projectPath}/src/app/foo/foo.effects.ts`
+    );
+    expect(content).toMatch(
+      /import { Actions, createEffect, ofType } from '@ngrx\/effects';/
+    );
+    expect(content).not.toMatch(/@Effect\(\)/);
+    expect(content).toMatch(
+      /loadFoos\$ = createEffect\(\(\) => this.actions\$.pipe\(/
+    );
+  });
+
+  it('should create an api effect using creator function', () => {
+    const options = {
+      ...defaultOptions,
+      effectCreator: true,
+      api: true,
+      feature: true,
+    };
+
+    const tree = schematicRunner.runSchematic('effect', options, appTree);
+    const content = tree.readContent(
+      `${projectPath}/src/app/foo/foo.effects.ts`
+    );
+    expect(content).toMatch(
+      /import { Actions, createEffect, ofType } from '@ngrx\/effects';/
+    );
+    expect(content).not.toMatch(/@Effect\(\)/);
+    expect(content).toMatch(
+      /loadFoos\$ = createEffect\(\(\) => this.actions\$.pipe\(/
+    );
+  });
 });
diff --git a/modules/schematics/src/effect/schema.json b/modules/schematics/src/effect/schema.json
index 7d29ab270d..5678bc8196 100644
--- a/modules/schematics/src/effect/schema.json
+++ b/modules/schematics/src/effect/schema.json
@@ -63,6 +63,12 @@
       "description":
         "Specifies if effect has api success and failure actions wired up",
       "aliases": ["a"]
+    },
+    "effectCreator": {
+      "type": "boolean",
+      "default": false,
+      "description": "Specifies if the effect creation uses 'createEffect'",
+      "aliases": ["ec"]
     }
   },
   "required": []
diff --git a/modules/schematics/src/effect/schema.ts b/modules/schematics/src/effect/schema.ts
index 96b82a8e1b..64a8ad9700 100644
--- a/modules/schematics/src/effect/schema.ts
+++ b/modules/schematics/src/effect/schema.ts
@@ -48,4 +48,9 @@ export interface Schema {
    * Specifies if effect has api success and failure actions wired up
    */
   api?: boolean;
+
+  /**
+   * Specifies if the effect creation uses 'createEffect'
+   */
+  effectCreator?: boolean;
 }
diff --git a/modules/schematics/src/feature/schema.json b/modules/schematics/src/feature/schema.json
index f39099fbec..17a1eb5ac7 100644
--- a/modules/schematics/src/feature/schema.json
+++ b/modules/schematics/src/feature/schema.json
@@ -56,6 +56,12 @@
       "description":
         "Specifies if api success and failure actions, reducer, and effects should be generated as part of this feature.",
       "aliases": ["a"]
+    },
+    "effectCreator": {
+      "type": "boolean",
+      "default": false,
+      "description": "Specifies if the effect creation uses 'createEffect'",
+      "aliases": ["ec"]
     }
   },
   "required": []
diff --git a/modules/schematics/src/feature/schema.ts b/modules/schematics/src/feature/schema.ts
index 08ac475cb2..0663f2d10c 100644
--- a/modules/schematics/src/feature/schema.ts
+++ b/modules/schematics/src/feature/schema.ts
@@ -44,4 +44,9 @@ export interface Schema {
    * should be generated as part of this feature.
    */
   api?: boolean;
+
+  /**
+   * Specifies if the effect creation uses 'createEffect'
+   */
+  effectCreator?: boolean;
 }