Markets · 6 pages · 12 min
How an ETF trades all day
An exchange-traded fund's shares change hands on an exchange throughout the session, not only at the close.
When the purchase is complete, return to the original window. It will refresh.
From the opening
An exchange-traded fund holds a portfolio, like a mutual fund, but its shares are listed on an exchange and can be bought and sold all session at a market price. You do not have to wait for an end-of-day net asset value to pass shares to another investor. The opening covers shares are listed and quoted, trades print through the session, and most trades swap existing shares.
The rest of the brief — the later sections and the reading notes — opens after Stripe confirms payment.
Inside
- Shares are listed and quoted
- Trades print through the session
- Most trades swap existing shares
- Big blocks can be created
- Where the idea stops applying
- A distinction worth keeping
Sources
- Exchange-traded fund listing
- Authorized participant creation