Several exchange-traded funds track the Dow Jones Industrial Average but have a negligible impact on the price of the 30 companies that comprise the Dow index, according to The Motley Fool. Since the Dow is such a liquid index, ETFs that track the Dow have little impact on market activity.
The majority of ETFs trade in secondary markets and therefore have little to no effect on underlying markets, especially liquid markets and indexes such as the Dow, explains the Investment Company Institute. Most trading activity involving ETFs is the buying and selling of existing shares instead of creating new shares, which keeps ETFs from diluting the underlying market that they track.
The Dow Jones Industrial Average contains the stocks of companies
The majority of ETFs trade in secondary markets and therefore have little to no effect on underlying markets, especially liquid markets and indexes such as the Dow, explains the Investment Company Institute. Most trading activity involving ETFs is the buying and selling of existing shares instead of creating new shares, which keeps ETFs from diluting the underlying market that they track.
The Dow Jones Industrial Average contains the stocks of companies