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Dear Maurice: Four your information, next time pay attention in class, just kidding. Intraday Indicative Value (IIV): An Intraday Indicative Value is published by NYSE Alternext US for each ETF as a reference value to be used in conjunction with other ETF market information. The Intraday Indicative Value for an ETF is typically published under a separate symbol every 15 seconds over the Consolidated Tape and calculated throughout the trading day based on the last sale prices of the securities specified for creation and redemption plus any estimated cash amounts associated with the creation unit, all on a per-ETF share basis. This value is also referred to as an "Underlying Trading Value", "Indicative Optimized Portfolio Value (IOPV)", and "Intraday Value", in various places such as the prospectus and marketing materials for different ETFs. The Intraday Indicative Value is designed to give investors a sense of the relationship between a basket of securities that are representative of those owned in the ETF and the share price of the ETF on an intraday basis. Regards, Ted
@ted has provided the definition. From a practical perspective, the difference between the IIV value and the ETF value provides a sense of how far off the tracking might in the ETF price because of investor speculation or thin trading. This is particularly useful for lightly traded ETFs because the ETF price may be way off from the value of current underlying assets of the ETFs if it has not traded for a while. When you buy an ETF, you should be paying the IIV value or the ETF price whichever is less in theory. IIV is not that useful for heavily traded ETFs which has better price discovery and the 15 min IIV may itself be stale.
About M*, the IIV value seems correct but I have no idea what the change next to it is based on. It looks like some erroneous calculation which wouldn't be the first time for M* data.
You can also look it up in Yahoo finance as ^FRAK-IV (replace FRAK with any ETF symbol). That has the correct change data unlike M*. However you would rarely ever need the change data in practice.
Comments
Intraday Indicative Value (IIV): An Intraday Indicative Value is published by NYSE Alternext US for each ETF as a reference value to be used in conjunction with other ETF market information. The Intraday Indicative Value for an ETF is typically published under a separate symbol every 15 seconds over the Consolidated Tape and calculated throughout the trading day based on the last sale prices of the securities specified for creation and redemption plus any estimated cash amounts associated with the creation unit, all on a per-ETF share basis. This value is also referred to as an "Underlying Trading Value", "Indicative Optimized Portfolio Value (IOPV)", and "Intraday Value", in various places such as the prospectus and marketing materials for different ETFs. The Intraday Indicative Value is designed to give investors a sense of the relationship between a basket of securities that are representative of those owned in the ETF and the share price of the ETF on an intraday basis.
Regards,
Ted
About M*, the IIV value seems correct but I have no idea what the change next to it is based on. It looks like some erroneous calculation which wouldn't be the first time for M* data.
You can also look it up in Yahoo finance as ^FRAK-IV (replace FRAK with any ETF symbol). That has the correct change data unlike M*. However you would rarely ever need the change data in practice.