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
Freedom Holdings Corporate Update; Announces Management Has Signed Letter of Intent • FHLD • Jul 3, 2024 9:00 AM
EWRC's 21 Moves Gaming Studios Moves to SONY Pictures Studios and Green Lights Development of a Third Upcoming Game • EWRC • Jul 2, 2024 8:00 AM
BNCM and DELEX Healthcare Group Announce Strategic Merger to Drive Expansion and Growth • BNCM • Jul 2, 2024 7:19 AM
NUBURU Announces Upcoming TV Interview Featuring CEO Brian Knaley on Fox Business, Bloomberg TV, and Newsmax TV as Sponsored Programming • BURU • Jul 1, 2024 1:57 PM
Mass Megawatts Announces $220,500 Debt Cancellation Agreement to Improve Financing and Sales of a New Product to be Announced on July 11 • MMMW • Jun 28, 2024 7:30 AM
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM