The bid-ask spread is the variation between the price at which a buyer is willing to purchase a security and the price at which the seller is willing to offer the same security. The market structure and liquidity of the…

The tracking error of a fund is the annualized standard deviation of the differences in the daily ETF’s returns, based on its net asset value (NAV),  and the benchmark index returns. The ETF’s reported tracking error is useful to investors….

  Secondary market trading involves buying and selling of ETFs on exchanges. The trade happens between any pair of market participants, i.e, individual or institutional investors, market makers, and so on. The selling activities of individual investors in the secondary…

An exchange-traded fund (ETF) is an investment fund that holds assets such as bonds, stocks, and commodities and is traded on the stock exchange. An ETF operates with an arbitrage mechanism planned to keep it trading close to its net…