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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?


To: fred woodall who wrote (30792)4/13/2012 7:40:38 AM
From: Follies  Read Replies (1) | Respond to of 218857
 
>>Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.


I dont understand why they need to create or destroy units. Why not let the price rise or fall to equalize the demand?