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It sounds like you are expecting the ETF would be creating more shares frequently which it does not. That would have to happen as a secondary offering and it wo
by citrik 16y ago
It sounds like you are expecting the ETF would be creating more shares frequently which it does not. That would have to happen as a secondary offering and it would dilute the value of all the other shares in circulation, Assuming they are the same class share.
- borism 16y agoThere's no dilution with ETF. When ETF shares are created (via formation of Creation Unit), the ETF holdings increase by equal amount of underlying assets. You can create as many ETF shares as market demands (until you run out of possibility to buy underlying assets).