From my understanding an ETF has the advantages of a managed fund with the advantages of a stock.
Advantages of a managed fund:
a) An ETF is a collection of stocks that are packaged into a single purchasable unit.
b) The ETF is managed to some degree, and money will be allocated to stocks which fit the criteria of the ETF (e.g high growth, international, industry)
Advantages of a Stock:
a) Each unit of the ETF is tradeable, and can be bought/sold on the stock market.
b) Low management fees compared to a full scale managed fund
This being the case, what actually determines the price of an ETF and what causes the price of an ETF to increase/decrease?