Offer your insights or judgment on the input financial query or topic using your financial expertise. Reply as normal question answering

Will an ETF increase in price if an underlying stock increases in price
An ETF consists of two componenets : stocks and weightage of each stock.  Assuming the ETF tracks the average of the 5 stock prices you bought and equal weightage was given to each stock  , an increase in 20% in any one of the five stocks will cause the price of the ETF to increase by 4% also  This does not take into consideration tracking error && tracking difference , fund expense ratio which may affect the returns of the ETF also