ETFs have become incredibly popular over the last few years because they come with nice benefits such as #Diversification, low costs, high liquidity, accessibility and transparency.
However, if you are the average investor, they can be a bit of a mystery: You aren’t exactly sure how they work and why the share price between ETFs is so different. Why do #ETFs that track the same #Index, like the S&P 500, have a different #ETF share price?
Don’t worry, today is the day to find that out!
This video explains how the pricing of ETFs work in a very simple way.
⏰⏰ Timecodes ⏰⏰
0:00 Intro
1:03 Fund Explained
3:25 ETF Share Price
5:53 Creation and Redemption
10:09 Benefits of Creation and Redemption
11:30 Summary
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DISCLAIMER: This video is for educational purposes only and merely cites my own personal opinion. In order to make the best financial decision that suits your own needs, you must conduct your own thorough research and seek the advice of a licensed financial advisor if necessary.
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