Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

ETFs With The Largest Premiums & Discounts

FYI: Exchange-traded funds typically don't stray far from their net asset values (NAVs). One of the greatest strengths of the ETF structure, the creation/redemption mechanism, makes it so the price of a fund stays close to the value of its underlying assets.

Usually, this process works flawlessly. Out of the nearly 2,000 ETFs on the U.S. market today, 83% of them are trading within 1% of their NAVs, while 94% of them are trading within 2% of their NAVs. For various reasons, the others have larger gaps between their market price and the value of their assets. Sometimes, those gaps are substantial.
Regards,
Ted
http://www.etf.com/sections/features-and-news/etfs-largest-premiums-discounts?nopaging=1
Sign In or Register to comment.