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Divergence of HY mutual funds and ETF

Today HYG and JNK ETFs down while most of HY bond mutual funds up. How to explain that? And what is good way to monitor HY market trend intraday?

Comments

  • Intraday? Are you a day trader or what?
  • edited March 2017
    It was a given the open end would be up today based on how far they (the ETFs) were trading above yesterday's NAV. Yesterday the last hour or two the ETFs rallied way above the previous day's NAV forecasting a catch up day for the open end today. It's really simple but complicated if you aren't familiar with monitoring the relationship between the ETFs intraday and their NAV of the previous day.
  • @Junkster Thanks. I think I understood that. A big difference between price and NAV for HY ETF will be corrected next day by adjusting bond prices and therefore price of open end funds.
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