Exchange-Traded Funds (ETFs) ia.com

the ETF shares are trading at a discount to underlying securities (a price lower than the NAV), then arbitrageurs buy ETF shares on the open market. The arbitrageurs will then form creation units, redeem the creation units to the custodial bank, receive the underlying securities, and sell them for a profit. If the ETF shares are trading at a premium to the underlying securities (a price higher ... ................
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