NAV, Market Price, Premiums and Discounts

ETFs look simple on the surface—you buy a ticker and move on. But behind every ETF is a set of mechanics that explains how shares get created, why prices usually stay close to what the fund owns, and when trading costs and tax outcomes can surprise you. In Part 2 of this three-episode series, I break down the ETF "plumbing" in plain English so you can use ETFs more confidently and avoid common mistakes.

Listen now and learn:

► What authorized participants actually do—and why they matter to everyday ETF investors

► How the creation/redemption process works behind the scenes when supply and demand shift

► Why NAV and market price can diverge, and what typically pulls them back together

► The practical implications for you: spreads, execution, and when ETFs can behave differently than mutual funds

Visit www.TheLongTermInvestor.com for show notes, free resources, and a place to submit questions.

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Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)