Tuesday, January 20, 2015

Can anyone explain this about ETFs?


Feel free to tell me I am completely lost if that's the issue. But ETFs index a sector or set of stocks, yes? So the price pressure on the ETF is primarily a reflection of price of the stocks or goods in question. However, since the ETF trades like a stock, there must be some price pressure based on the buying and selling of the ETF itself -- yes or no?


Let's say someone manages to create hype for USO, but the price of oil remains flat. Assuming they pump an extra 5% buy volume in a day, how much, if at all, would that impact the price of USO?







Submitted January 20, 2015 at 11:54AM by tingmakpuk http://ift.tt/15sltc9

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