netflix stock

thankyou Mat you are amazing!

Hi there,

That is a complicated question. It really depends on the ETF in question. If its an Index ETF than it will only move in and out of holdings depending on what is in the Index they are tracking. Perfromance does impact ETF holdings, so stocks can drop out or move into Indexes. This usually happens quarterly, then the ETFs will react accodingly.

Actively managed ETFs that don't track Indexes are likely to make moves more frequently - i think of Cathie Wood and the ARK ETFs - they are constantly moving in and out of positions. That will be dependent on the fund manager and questions.

There is also the potential rebalancing that occurs which may cause the ETF to exit or add to positions to keep inline with its stated goals.

So in essence it will depend on the fund manager's view on the company, the need to rebalance and the type of ETF. But in general, yes if a company is underpeforming an ETF could exit the position and replace it, or conversely add to its position.

Mat