ETF 101 - How ETFs Trade Differently

ETF 101
Written By Graham MacKenzie, Head of Exchange Traded Products, Toronto Stock Exchange

In this video, Graham MacKenzie, Head of Exchange Traded Products, Toronto Stock Exchange discusses how ETFs trade differently from stocks:

  • Market makers and arbitrage opportunities push ETF prices towards the fair value of the underlying basket that its invested in

  • Unlike stocks, ETFs don’t have a fixed number of shares outstanding

  • If there isn’t enough on-screen liquidity, there is a secondary level of liquidity that market makers can tap

 
Graham MacKenzie, Head of Exchange Traded Products, Toronto Stock Exchange
Previous

ETF 101 - Diversity of Our ETFs
Next

ETF 101 - ETF Trading Best Practices