Etf’s Share Price

In by Michael O'Brien2 Comments

Michael O'Brien

Hi guys,

Im a tad stumped. I understand how normal share prices are effected by everyday activity but What affects an ETF share price? Especially if it is just tracking an index?
If the asx 200 does poorly for example would that lower the price of the relevant etf which is tracking it? Or is the etf dependant on people buying and selling the etf in anticipation of a drop/ rise in the index?

I have a feeling i have completely missed the mark with this one and will continue to research this myself in case i do not recieve a reply.

  • Edit

    Hi Michael,

    Apologies for the late reply - happy new year!

    Generally speaking, the price of an ETF that is tracking an index such as the ASX200, should be determined by the value of the funds holdings. So yes, if the ASX200 does poorly as an index, then the price should go down.

    Hope that helps?

  • Edit
    Michael O'Brien

    I too am sorry for the later response! Thanks for getting back to me! i appreciate it! Love the show