Advertisement

Undone

11 Jul 2021

∙

General Investing

What determines price of an ETF?

A fundamental question to know - what determines the price of an ETF? I understand that it consists of a bag of stocks. Does it mean price is only affected by the bag of stocks solely or it is still affected by sentiments since it is publicly traded ie. more buyers will drive price up?

1

Discussion (1)

What are your thoughts?

Learn how to style your text

Tan Choong Hwee

11 Jul 2021

Investor/Trader at Home

Need to differentiate value and price. The value (NAV) of an ETF is the sum of the values of the underlying stocks. However, no investor knows the exact value of an ETF because nobody other than the ETF manager/system knows the exact holdings, therefore the price of an ETF is determined by supply and demand, which is affected by investors' sentiments.

Reply

Save

Write your thoughts

Related Posts

How do we determine the buy price of an ETF?

How does one determine the intrinsic value (and therefore calculate an entry price after factoring in a margin of safety) for a ETF e.g. VOO or STI?

How do we know kristal ai charge us the price the etf was bought? Bcoz there’s time range it will buy the etf and we couldn’t see the “receipt”. What if it charged highest price around that period?

US Domiciled ETFs vs Irish Domiciled ETFs. Irish ETF price chart not following S&P 500, unlike US ETF

I am planning to start my investment journey with ETFs. How do I determine if i should start investing in SPDR STI ETF (ES3) or NIKKO AM STI ETF (G3B) first? What is the difference between both?

Related Posts

How do we determine the buy price of an ETF?

How does one determine the intrinsic value (and therefore calculate an entry price after factoring in a margin of safety) for a ETF e.g. VOO or STI?

How do we know kristal ai charge us the price the etf was bought? Bcoz there’s time range it will buy the etf and we couldn’t see the “receipt”. What if it charged highest price around that period?

US Domiciled ETFs vs Irish Domiciled ETFs. Irish ETF price chart not following S&P 500, unlike US ETF

I am planning to start my investment journey with ETFs. How do I determine if i should start investing in SPDR STI ETF (ES3) or NIKKO AM STI ETF (G3B) first? What is the difference between both?

Advertisement