I'm wondering how ETFs work fundamentally.
When you buy an ETF does it raise the price of an etf like a stock does? Are they subject to inflating or overvaluation like stocks are or does the etf take that money and buy more underlying securities.
Say in a hypothetical world the etf VCN became really popular and lots of people started buying it. Since an etf has underlying shares in many stocks would it start raising the prices of those stocks or would it just start buying more shares to drop the price of the etf back down like a mutual fund would?
I realize this might not be the correct place to ask but I just find it a little confusing.
Thanks!
Submitted April 06, 2017 at 09:38AM by Lovv http://ift.tt/2oHJJ7a
