195: Ilan Israelstam – The Inner Workings of an ETF Manager
Chat With Traders
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The Open-Ended Nature of an ETF
Buying and selling of the underlying ETF has no impact on the price of theETF. It's not like a company where, you know, if there's a whole lot more buyers than there are sellers, so the price of that company will go up. You can't game that because these are essentially instruments that are open-ended. If somebody was to put a crazy price in there, it just simply wouldn't be hit by that market maker. So that's the way in which those particular products work.
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