He explained how it works for the investor, which is so simple......I was intrigued if he were to explain HOW the ETF provider manages to strictly follow the index, QQQ for example. This is how ETFs work.
Exactly!! Hurts my brain trying to understand the intricacies of how it actually works. Example, say millions of traders and investors go long on an ETF around the same time. How does that sudden demand NOT affect the share price of the fund?
@@Cello69. does it though? I would think bots and traders keep the price synchronized with the share, because when the share goes up but the etf stays low, I would definitely buy the etf. The thing I don’t understand is: what is the risk of providing etf’s? If you just place them on the market and never buy them again, you don’t loose money, right? I guess I’ll place a couple of etf’s on the market this afternoon if this is the case!
In the short run, supply and demand determines the price of the fund. In the long run, funds track the value of their underlying assets (called NAV) due to arbitrage opportunities that arise when the prices diverge. If the fund is overvalued, institutional investors quickly sell the fund and buy the underlying assets. If the fund is undervalued, institutional investors quickly buy the fund and sell the underlying assets. These transactions both bring the prices together
@@bosskey23 I think what he means by this is that you can still on your own go and buy/sell the shares that make up the specific ETF on the stock exchange. But you can't remove/add shares from the ETF itself
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
Some strategies could be put in place for solid gains regardless of the economic situation, but such execution is usually carried out by an investment specialist.
@@FolarinSodiq I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
@@elegboozioma7267 Just research the name, Victoria Carmen Santaella. You’ll find the necessary details to work with a correspondence to set up an appointment.
So, you give your money to a company and trust that they will use that money to purchase the underlying asset though there is no proof that they actually did. And then you trust that if that asset goes up in price and you want to cash out that they will 1. have the funds to cash you out and 2. not screw you over even if they do have the funds. So, basically the same thing Sam Bankman Fried did. Gotcha. 😉
Brother what? It’s like selling a stock you sell when the market is open and then you get your money you dont go to them directly unless you are going to buy the entire company or something
He explained how it works for the investor, which is so simple......I was intrigued if he were to explain HOW the ETF provider manages to strictly follow the index, QQQ for example. This is how ETFs work.
Exactly!! Hurts my brain trying to understand the intricacies of how it actually works. Example, say millions of traders and investors go long on an ETF around the same time. How does that sudden demand NOT affect the share price of the fund?
@@Cello69. Correct, that’s the question. Unfortunately I can’t tell.
@@Cello69. does it though? I would think bots and traders keep the price synchronized with the share, because when the share goes up but the etf stays low, I would definitely buy the etf. The thing I don’t understand is: what is the risk of providing etf’s? If you just place them on the market and never buy them again, you don’t loose money, right? I guess I’ll place a couple of etf’s on the market this afternoon if this is the case!
I watched more than five videos to understand what is ETF but only this video make me understood
Where does the pricing of the etf come from, and how is it tied to the prices of the underlying stocks?
In the short run, supply and demand determines the price of the fund. In the long run, funds track the value of their underlying assets (called NAV) due to arbitrage opportunities that arise when the prices diverge. If the fund is overvalued, institutional investors quickly sell the fund and buy the underlying assets. If the fund is undervalued, institutional investors quickly buy the fund and sell the underlying assets. These transactions both bring the prices together
@@alexjlytleSo investor have access to the underlying assets (for example share) when they buy an ETF? Can they add and remove stocks from the ETF?
@@bosskey23 I think what he means by this is that you can still on your own go and buy/sell the shares that make up the specific ETF on the stock exchange. But you can't remove/add shares from the ETF itself
How can I launch an ETF and become the guy with the basket?
Why not start trading
Do so with a profesional if your inexperienced
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
Some strategies could be put in place for solid gains regardless of the economic situation, but such execution is usually carried out by an investment specialist.
@@FolarinSodiq I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders.
@@ShellyHuerta Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
@@elegboozioma7267 Just research the name, Victoria Carmen Santaella. You’ll find the necessary details to work with a correspondence to set up an appointment.
@@ShellyHuerta Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible.
Well explained
So, you give your money to a company and trust that they will use that money to purchase the underlying asset though there is no proof that they actually did. And then you trust that if that asset goes up in price and you want to cash out that they will 1. have the funds to cash you out and 2. not screw you over even if they do have the funds. So, basically the same thing Sam Bankman Fried did. Gotcha. 😉
Brother what? It’s like selling a stock you sell when the market is open and then you get your money you dont go to them directly unless you are going to buy the entire company or something
Just get to f ing point
this video is literally 5 minutes lmao chill out
Please stop with the vocal fry, dude.
haha
😂
I was hoping to learn what ETFs are from this video, but the way he squeezes his throat while talking made my brain hurt. I'll find another source.
Smart and hot 🥵
He lost me at "finaaans"