How an ETF works
Explain units, NAV, market makers and why an ETF’s price stays close to what it holds.
Module 17 of 26, ETFs, index funds and super. Lesson 1 of 6, about 14 minutes.
The takeaway
Market makers’ profit motive keeps an ETF’s price stuck close to what its holdings are really worth.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
Open this lesson in the course
General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.