Just wondering if anyone can help me with the answer here as I can’t seem to find anything online;
If I invest in an ETF, am I buying a share that already existed (a unit from a market maker that has presumably come from another investor), or is a new unit of that ETF created for me and if its the latter, does the fund then buy more shares of its holdings?
And if I sell a share, is that portion of the fund destroyed (sold) for me to redeem my money?
I’m just trying to work out if more people investing in an ETF means that the fund buys more shares of its holdings and becomes bigger or not?
Thank you for any help.