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ETFs ☀️ Everything you need to know about ETFs

Australian Investors Podcast

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ETFs Are a Trust Structure, So You Have to Pay the Tax

When you buy an ETF, someone's essentially stapling together all the underlying stocks in that index or whatever that portfolio is below it. With a listed investment company or any company that trades, typically you have to wait for it a seller to be a buyer and to get those shares appear in your brokerage account. Whereas with anETF, there's very good transparency because they're basically tied together so new units can be created or redeemed at the around about the price. It's believed anywhere from like 50% of the shares on the US exchanges can be bought and sold by Exchange Traded Funds (ETFs) But it's estimated only single digits of trading takes place.

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