Please help me to understand how ETF/Mutual Fund unit price determine?
So I do understand a share of ETF/Mutual funds (like VEQT, ZGRO..etc) is like a big basket holding a tiny % of each top companies stock.
What I don't understand is how ETF share price go up and down.
Does the ETF unit price just automatically go up because one of the holding company price go up? (eg: If the ETF has a dollar worth of Apple stock, and Apple stock go up 10%, then now the cost of the ETF will be 10 cents more to buy. Vice Versa, if Apple goes down 10%, then the ETF unit will be 10 cents cheaper?)
Or
ETF/mutual funds is like individual stock base on supply and demand, for example the price go up because more people want to buy the ETF?
Thanks for helping me to understand.
What I don't understand is how ETF share price go up and down.
Does the ETF unit price just automatically go up because one of the holding company price go up? (eg: If the ETF has a dollar worth of Apple stock, and Apple stock go up 10%, then now the cost of the ETF will be 10 cents more to buy. Vice Versa, if Apple goes down 10%, then the ETF unit will be 10 cents cheaper?)
Or
ETF/mutual funds is like individual stock base on supply and demand, for example the price go up because more people want to buy the ETF?
Thanks for helping me to understand.
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