When people invest by buying an ETF or mutual fund, either fund would then go on the buy the underlying assets, right?
I understand an ETF is traded on an exchange with bid and ask spread, whereas investing in a mutual fund the investor pays the net AUM – so there’s a difference in respect to how the investor buys the fund. But after this point, do mutual funds buy the shares for the fund in the same or a different way to how an ETF fund would?
I’m trying to understand if when people invest into a ETF vs mutual fund, if it has a different affect on the underlying assets’ volume data. Does the way institutions buys shares differ whether it’s for an ETF or Mutual Fund, or is it the same in terms of being visible via increased volume?
The reason I’m trying to understand this is because I know ETFs are newer compared to mutual funds, and most the books and resources and theory I read in terms of analysing volume and PA to notice accumulation or distribution were probably from the days before ETFs were so prevalent. And if ETFs change this in some way I want to try and understand how to better my understanding.
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