ELI5: Demand and supply rules for ETFs


Sorry if this is a dumb question but something about ETF pricing is really bothering me. I read that, unlike individual stocks, the price of an ETF does not get affected by volume. So according to that logic, even if everyone decides to buy as many shares of VOO as they can, the market won't go up because they only traded an ETF and not individual stocks. This doesn't make sense because people are after all putting a lot of money in the market, so the market should go up based on simple demand and supply.

So basically my question is, is it true that even if the whole world buys VOO, the market won't bugde?


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *