please forgive me for anything dumb i say, i am just getting into ETFs and im trying to peel apart the concept before jumping in.
heres my question (i think): by buying into an ETF am i investing in the individual stocks it is comprised of, or am i investing in the ETF as an entity? is there even really a difference?
to illustrate my point, if i invest in an EFT like KRUZ or NANC that tracks the activity of congress, am i betting directly on the performance of the stocks they pick? or am i really betting on peoples confidence in the logic behind the ETF, aka the ability of these jerks to make trades?
lets say a news story breaks about a bill that would outlaw insider trading. the stocks that congress has bought wouldn’t necessarily dive, but could there be a fire sale on the ETF because the core concept is about to disintegrate? if the news was reversed and congress is about to deregulate their own trading even more, would the value of the ETF jump?
thank you for your patience
