FYI: Exchange traded funds are easy-to-use investment tools that help investors track various market segments, but how are ETFs fairly priced?
ETFs hold a basket of securities, including stocks, bonds and/or cash, so an ETF’s share price is affected by the total value of its underlying components, which may fluctuate throughout the day. Consequently, ETF investors should consider the net asset value, or NAV, when deciding if they are getting their money’s worth with an ETF investment.
Regards,
Ted
http://www.etftrends.com/2016/07/a-closer-look-at-how-etfs-track-a-basket-of-securities/
