3 ms·
the genius thing about ETFs is they don't have to buy or sell the stock: others do it for them have a read about the creation/redemption mechanism and you'll s
by blibble 4y ago
the genius thing about ETFs is they don't have to buy or sell the stock: others do it for them
have a read about the creation/redemption mechanism and you'll see why this won't heppen
- thoughtstheseus 4y agoThey issue the person redeeming the the actual underlying securities. Then it’s up to them to sell it. Fun model.
- im3w1l 4y agoYeah, I knew about that. I had to look up their relative size to mutual funds though. Turns out mutual funds manage $23.9T compared to $5.4T in ETFs. I guess passive funds are more likely to be ETFs. But it could mean there is enough passive mutual fund money to pose a problem. https://www.investopedia.com/articles/exchangetradedfunds/08/etf-mutual-fund-difference.asp https://www.investopedia.com/articles/exchangetradedfunds/08...