Looking back on the recent volatility spike in equities, I was wondering. Does demand for an equity ETF create a demand for the underlying shares that comprise the ETF, as in program trading in the 80's? Conversely, if a lot of people are selling an equity ETF, does the trust manager then have to sell like quantities of the underlying stocks, like in the crash of 87 with stock index futures? I was wondering if ETF seling bleeding through to the individual shares helped to aggravate the drop of 2/27.
2007-03-09
18:29:34
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2 answers
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asked by
rvonslanniker
1