We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
The MSE Forum Team would like to wish you all a Merry Christmas. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!
Investing newbie
Comments
-
The mechanism for creating new ETF units ensures that there is not a significant premium or discount. If there was a premium or discount, the tracking error for ETF trackers would be unacceptable. The mechanism for creating or removing ETF units is dynamic, unlike the formal mechanism of issuing new shares (or for share buy backs) needed for investment trusts.
0 -
Market liquidity determines price. No buyers. Discounts occur. Takes two parties to trade. Many ETF's aren't traded frequently.coyrls said:The mechanism for creating new ETF units ensures that there is not a significant premium or discount. If there was a premium or discount, the tracking error for ETF trackers would be unacceptable.0 -
I'm just trying to get my head around this particular concept - the HSBC global fund, is that an example of an etf?0
-
No, just ignore the posts about ETF's, the thread has gone a bit off tangent ( it often happens )Sandra97 said:I'm just trying to get my head around this particular concept - the HSBC global fund, is that an example of an etf?3
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.9K Banking & Borrowing
- 253.9K Reduce Debt & Boost Income
- 454.7K Spending & Discounts
- 246K Work, Benefits & Business
- 602.1K Mortgages, Homes & Bills
- 177.8K Life & Family
- 259.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards