Past Fund Performance Is Correlated with Future Fund Performance,such As,poor

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The Answer is ETFs are investment funds traded on stock exchanges,which usually track an index,such as a stock index or bond index.Like closed-end funds they trade at a price determined by supply and demand and can be bought and sold at that price during the day.Unlike closed-end funds,ETFs trade close to its net asset value over the course of the trading day.They differ in that,as at the close of the trading day investors can create more shares of ETFs by turning in a basket of securities which replicate the holdings of the ETF,or can turn in ETF shares for a basket of the underlying securities.This eliminates one of the major disadvantage of closed-end funds,the potential for large discounts.If the price of an ETF strays very far from its net asset value,arbitrageurs will create or destroy shares,driving the price very close to the net asset value.

Past Fund Performance Is Correlated with Future Fund Performance,such As,poor

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