Sentences with phrase «unit value of the underlying securities»
The NAV represents the per - unit value of the underlying securities, so in theory it should be what investors are willing to pay for one share of the ETF.
http://www.moneysense.ca/ Not exact matches
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.
Like a mutual fund, ETFs are open - ended, meaning that new units of the fund can be created or redeemed at a price per unit that reflects the market value of the underlying securities the fund holds.
Authorized participants may wish to invest in the ETF shares for the long - term, but usually act as market makers on the open market, using their ability to exchange creation units with their underlying 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.