Followers | 179 |
Posts | 4101 |
Boards Moderated | 0 |
Alias Born | 12/22/2014 |
![](https://investorshub.advfn.com/uicon/510643.png?cb=1572645125)
Sunday, April 12, 2020 11:18:44 AM
The shares of an exchange-traded fund can be traded throughout the day. The value of the ETF is also driven by the value of the holdings in the fund. With many securities in each ETF and all of them changing value constantly, there is potential for the price you pay on the market for the ETF shares to differ from the NAV.
There are institutions that participate in the markets to form "creation units" that make it possible for the price you pay for the ETF to track the ever-changing NAV. Whenever the NAV and market price separate, this mechanism brings them back in line. I'll leave the details on how that works for another day but you should know it isn't guaranteed, instantaneous, or perfect.
https://www.marketwatch.com/story/what-drives-the-price-of-an-etf-2016-07-22
Price is not only tracking it's being traded and SOMETIMES can differ from NAV(Net Asset Value) in unique circumstances(RS)..
You could take the time for me and look up the price actions in JNUG and its inverse JDST after a RS takes place and post the chart(s). Thinking this would be of value to everyone..
If you choose not to post the charts it would imply JNUG is about to fall after RS HARD. ;^)
Glta
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM