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..3214983e36 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, <%= effectMethod %><% 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';
@@ -12,8 +12,7 @@ import { <%= classify(name) %>ActionTypes, <%= classify(name) %>Actions } from '
 @Injectable()
 export class <%= classify(name) %>Effects {
 <% if (feature && api) { %>
-  @Effect()
-  load<%= classify(name) %>s$ = this.actions$.pipe(
+  <%= effectStart %>
     ofType(<%= classify(name) %>ActionTypes.Load<%= classify(name) %>s),
     concatMap(() =>
       /** An EMPTY observable only emits completion. Replace with your own observable API request */
@@ -21,15 +20,17 @@ export class <%= classify(name) %>Effects {
         map(data => new Load<%= classify(name) %>sSuccess({ data })),
         catchError(error => of(new Load<%= classify(name) %>sFailure({ error }))))
     )
-  );<% } %>
+  <%= effectEnd %>
+<% } %>
+
 <% if (feature && !api) { %>
-  @Effect()
-  load<%= classify(name) %>s$ = this.actions$.pipe(
+  <%= effectStart %>
     ofType(<%= classify(name) %>ActionTypes.Load<%= classify(name) %>s),
     /** An EMPTY observable only emits completion. Replace with your own observable API request */
     concatMap(() => EMPTY)
-  );
+  <%= effectEnd %>
 <% } %>
+
 <% if (feature) { %>
   constructor(private actions$: Actions<<%= classify(name) %>Actions>) {}
 <% } else { %>
diff --git a/modules/schematics/src/effect/index.spec.ts b/modules/schematics/src/effect/index.spec.ts
index 909cae69fe..b851bda01d 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,
+    effectCreators: false,
   };
 
   const projectPath = getTestProjectPath();
@@ -316,4 +317,42 @@ describe('Effect Schematic', () => {
       /constructor\(private actions\$: Actions<FooActions>\) {}/
     );
   });
+
+  it('should create an effect using creator function', () => {
+    const options = { ...defaultOptions, effectCreators: 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,
+      effectCreators: 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/index.ts b/modules/schematics/src/effect/index.ts
index 6ac96571a5..747cd3a2f0 100644
--- a/modules/schematics/src/effect/index.ts
+++ b/modules/schematics/src/effect/index.ts
@@ -93,6 +93,21 @@ function addImportToNgModule(options: EffectOptions): Rule {
   };
 }
 
+function getEffectMethod(effectCreators?: boolean) {
+  return effectCreators ? 'createEffect' : 'Effect';
+}
+
+function getEffectStart(name: string, effectCreators?: boolean): string {
+  const effectName = stringUtils.classify(name);
+  return effectCreators
+    ? `load${effectName}s$ = createEffect(() => this.actions$.pipe(`
+    : '@Effect()\n' + `  load${effectName}s$ = this.actions$.pipe(`;
+}
+
+function getEffectEnd(effectCreators?: boolean) {
+  return effectCreators ? '));' : ');';
+}
+
 export default function(options: EffectOptions): Rule {
   return (host: Tree, context: SchematicContext) => {
     options.path = getProjectPath(host, options);
@@ -116,6 +131,9 @@ export default function(options: EffectOptions): Rule {
             options.flat ? '' : s,
             options.group ? 'effects' : ''
           ),
+        effectMethod: getEffectMethod(options.effectCreators),
+        effectStart: getEffectStart(options.name, options.effectCreators),
+        effectEnd: getEffectEnd(options.effectCreators),
         ...(options as object),
       } as any),
       move(parsedPath.path),
diff --git a/modules/schematics/src/effect/schema.json b/modules/schematics/src/effect/schema.json
index 7d29ab270d..afde9e7136 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"]
+    },
+    "effectCreators": {
+      "type": "boolean",
+      "default": false,
+      "description": "Specifies whether to use the effect creators function",
+      "aliases": ["ec"]
     }
   },
   "required": []
diff --git a/modules/schematics/src/effect/schema.ts b/modules/schematics/src/effect/schema.ts
index 96b82a8e1b..7fcde3167c 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'
+   */
+  effectCreators?: boolean;
 }
diff --git a/modules/schematics/src/feature/schema.json b/modules/schematics/src/feature/schema.json
index f39099fbec..11b7d7be1f 100644
--- a/modules/schematics/src/feature/schema.json
+++ b/modules/schematics/src/feature/schema.json
@@ -56,6 +56,13 @@
       "description":
         "Specifies if api success and failure actions, reducer, and effects should be generated as part of this feature.",
       "aliases": ["a"]
+    },
+    "creators": {
+      "type": "boolean",
+      "default": false,
+      "description":
+        "Specifies if the effects and actions be created using creator functions",
+      "aliases": ["c"]
     }
   },
   "required": []
diff --git a/modules/schematics/src/feature/schema.ts b/modules/schematics/src/feature/schema.ts
index 08ac475cb2..c01e13378f 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'
+   */
+  effectCreators?: boolean;
 }