NextShares Solutions believes that the SEC's decision to grant NextShares exemptive relief reflects their conclusion that use of NAV - trading provides a reliable basis for ensuring that NextShares will trade with
consistently low trading costs, while enabling NextShares funds to maintain the confidentiality of their non-Basket holdings.
In granting NextShares exemptive relief, the SEC concluded that use of NAV - trading provides a reliable basis for ensuring that NextShares will trade with
consistently low trading costs, while enabling NextShares funds to maintain the confidentiality of their non-Basket holdings.
Competition among market makers seeking simple and reliable profit opportunities should ensure
consistently low trading costs for NextShares investors.
NextShares are expected to trade with
consistently low trading costs because NAV - based trading offers simple and reliable profit opportunities to market makers.
Not exact matches
The principal potential advantage of NAV - based
trading is that it can support investors» ability to
trade NextShares at
consistently low costs, while maintaining the confidentiality of fund
trading information.
In ETF
trading,
consistently low investor
trading costs can not be assured unless market makers have sufficient knowledge of portfolio holdings to enable them to effectively arbitrage differences between an ETF's market price and its underlying portfolio value and to hedge the intraday market risk they assume as they take inventory positions in connection with their market - making activities.
My conclusion was that TFG
trades at a discount because of it's egregious fee structure a — i.e. if you have the same underlying risk on two bonds and someone «steals» 20 % of your coupon then that bond should naturally
trade at a discount... I chose to invest in CIFU as it
consistently pays out 50 % of all free cash as dividend and reinvests the other 50 % in similar asset and its running at much
lower cost base and REALLY is a pure play (i.e. no Asset Management assets)-- adding to that ISA eligible and CIFU stands out from my perspective.