Not exact matches
If you sell me a September 2011 call option with a strike
price of $ 19 on your XIU
ETF for a premium of 40 cents, it
gives me the right, but not the obligation, to buy your XIU
ETF from you
at $ 19
at any time before the option expires.
We call this «
price discovery» — the
ETF is showing you where the market should be
priced at a
given point in time, even if that market is closed.
First,
given that both
ETFs had dividend distributions and
at disparate levels (12 - month yield of 2.76 % for SPLV and 0.75 % for SPHB, according to Morningstar), a comparison of total instead of
price returns would be more appropriate.
At a
price of 55 basis points, investors can be comfortable knowing their assets are in the hands of the world's best bond investor, who
gives fair treatment to his
ETF investors.