Sentences with phrase «underlying net asset»

This difference between the price of an ETF and the price of the underlying net asset value is usually very small.

While closed - end funds often trade at a premium or discount because they have a fixed number of shares outstanding, market makers work with authorized participants (APs) to strive to keep the price of ETF shares close to fair value (i.e., in line with the ETF's underlying net asset value (NAV)-RRB-.

Value: This is represented by a stock that trades for less than the underlying net asset value (NAV).

The trick to these investments is to buy in when they trade below the underlying net asset value of their holdings.

Many also trade at less than underlying net asset value, providing the opportunity to buy a dollar's worth of assets at a discount.

Shares of an investment company represent indirect ownership interests in the fund's underlying net assets.

But as we noted last month, there is no guarantee that ETFs will trade at the value of their underlying net assets (NAV).

Not exact matches

ETFs are subject to risks similar to those of stocks and trading prices may not reflect the actual net asset value of the underlying securities.

A bond fund with a longer average maturity will see its net asset value (NAV) react more dramatically to changes in interest rates as the prices of the underlying bonds in the portfolio increase or decline.

UNG has witnessed a decline in its net asset value due to transaction and borrowing costs despite its underlying asset gaining in value.

An ETF holds assets such as stocks, supplies, or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day.

Authorized participants may wish to invest in the ETF shares long - term, but usually act as market makers on the open market, using their ability to exchange creation units with their basic securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates to the net asset value of the underlying assets.

MLP funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax - deferred return of capital and for any net operating gains as well as capital appreciation of its investments; this deferred tax liability is reflected in the daily NAV; and, as a result, the MLP fund's after - tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked.

This is in contrast to other mutual funds that tend to trade based on the net asset value of the underlying certificate.

This means that the value of the underlying positions represented by options is not expected to exceed 50 % of the value of the Fund's net assets at the time of investment.

Most of the large tracking error in the Vanguard MSCI U.S. Broad Market (VUS) was likely the result of currency hedging, but its annual report also cites «differences between the market price and net asset value of the underlying US domiciled Vanguard funds in which the ETF invests.»

Mutual fund share value, known as net asset value NAV, is calculated and announced once at the end of the trading day based on share prices of a portfolio's underlying securities.

Share prices can deviate from the fund's net asset value of the underlying securities it holds, as market forces of supply and demand can lead to a trading discount or premium.

The current trading value of an ETFs is derived from the net asset value of the underlying stocks / commodities that it represents.

The shares of the Spain Fund, Inc., a closed - end mutual fund investing in publicly traded Spanish securities, were bid up in price from approximately net asset value (NAV)-- the combined market value of the underlying investments divided by the number of shares outstanding — to more than twice that level.

The Spain Fund priced at twice net asset value was another example of trading sardines; the only possible reason for buying the Spain Fund rather than the underlying securities was the belief that its shares would appreciate to an even more overpriced level.

It is worth noting that there may be a difference between an ETF's market capitalization and the net asset value (NAV) of its underlying securities.

This means the net asset value of the fund is going up at the same pace as the value of the dividends plus the capital gains of the underlying stocks.

The ETFs trading value is based on the net asset value of the underlying stocks that it represents.

The last three trade close to the value of their underlying assets, but the PIMCO fund regularly trades at a 50 % premium to net asset value.

The biggest change is that both institutional and municipal money market funds must move from a stable $ 1.00 price per share to a floating net asset value based on the underlying investments on a daily basis.

Since those have no underlying stocks to speak of that create any meaningful measure of net asset value, the market tacitly acknowledges Berkshire must be valued only by its ability to create income.

As with all CEF investments, there is an additional potential for profit besides the increase in value of the underlying assets per share (also called Net Asset Value or NAV), which is the improvement of their market price relative to their NAV.

They are priced at the net asset value (NAV) of the underlying holdings.

One side effect of a «close - end» structure is that the LIC share price can depart from the value of the underlying assets (usually other equities), so the share price can trade at a premium or discount to its Net Tangible Aassets (usually other equities), so the share price can trade at a premium or discount to its Net Tangible AssetsAssets.

ETF providers use stocks» prices to calculate an ETF's intraday underlying value throughout the trading day, and the closing net asset value (NAV) of an equity ETF is typically very close to the ETF's closing price.

Mutual funds are typically purchased from and sold back to the investment company and priced at the end of the trading day, with the price determined by the net asset value (NAV) of the underlying securities.

«As of that date, institutional prime money - market funds will be required to float their net asset value, based on the market value of the underlying investments,» he warns.

A bond mutual fund's share price is always exactly its net asset value, or the value of the underlying securities in its portfolio.

On the other hand, thanks to the arbitrage mechanism that all ETFs have and similar to open - end mutual fund valuation, the value of an ETF as traded stays very close to the net asset value of the underlying securities in the ETF, with a spread of around 1 % if any.

Net Asset Value Or NAV is the value of each share of a fund as determined by the value of its underlying holdings, including any cash in the portfolio.

And they don't always trade at the net asset value of their underlying holdings.

And, the ETFs don't necessarily create more net demand for the underlying assets.

Shares of ETFs may trade at a premium or a discount to the net asset value of the underlying securities.

The Portfolio will then enter into non-U.S. currency hedging transactions to hedge the exposure of the net asset value of units of the Underlying Funds held by the Portfolio to fluctuations in the value of non-U.S. currencies.

► Shares in Lindsell Train investment trust, headed by Nick Train, were trading at a premium of almost 50 % to net asset value (NAV — the value of the underlying portfolio) last week.

The net asset value of a fund is linked to the base currency of the underlying.

The net current assets investment selection criterion calls for the purchase of stocks which are priced at 66 % or less of a company's underlying current assets (cash, receivables and inventory) net of all liabilities and claims senior to a company's common stock (current liabilities, long - term debt, preferred stock, unfunded pension liabilities).

These fees are based on the daily net asset value of the annuity's underlying investment portfolios, which can change every day as the market shifts.

Shares are bought and sold on demand at their net asset value (NAV), which is based on the value of the fund's underlying securities and is calculated at the end of the trading day.

It will invest at least 80 % of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform opposite to the securities of companies included in the underlying index.

The Net Asset Value (NAV) per share represents the estimated value of a single share based on a variety of factors including potential changes in the underlying value of real estate assets owned.

It's also important to keep in mind that because mutual fund assets are publicly - traded, the net asset value of its shares can be highly correlated to the fluctuations of the public market rather than tied solely to the inherent value of its underlying assets.

The net amount of interest payments from the underlying assets after bondholders and expenses are paid and after all losses are covered.

The price (AKA NAV, or net asset value) is always fixed at the value of the underlying securities.