Do leveraged ETFs, ETFs in general, affect the underlying indexes?

cyjackx

Newbie
1 0
If everybody piled into a leveraged S&P ETF like SPXL, for example, does that affect the S&P? And does that affect the S&P's constituents?

Does it matter that overbuying SPXL still wouldn't make it deviate from 3X SPY? Are leveraged ETFS subject to the same ideas of supply and demand?
 

userque

Junior member
47 5
If everybody piled into a leveraged S&P ETF like SPXL, for example, does that affect the S&P? And does that affect the S&P's constituents?

Does it matter that overbuying SPXL still wouldn't make it deviate from 3X SPY? Are leveraged ETFS subject to the same ideas of supply and demand?
This may help:

http://webcache.googleusercontent.com/search?q=cache:6D6EKd0U-KgJ:www.investmentnews.com/article/20160420/BLOG09/160429992/how-to-ease-clients-minds-about-etf-liquidity-concerns+&cd=56&hl=en&ct=clnk&gl=us

Googling 'etf liquidity trading price volume' may find more information.
 

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