Sentences with phrase «value of the security basket»

If the market value of the security basket does fall below 90 % of the ETF's NAV, the fund will ask the swap counterparty to pay the prevailing swap value by posting (or delivering) additional securities to top up the security basket (and thereby increase the collateral held) back to 100 % of NAV and thereby at least temporarily reducing counterparty risk back to zero.

Not exact matches

Mutual funds have traditionally invested in baskets of publicly traded securities, which collectively make up the fund's net asset value, or daily share price.

Buying a basket of ETFs somewhat removes the value of the manager, exposing investors to a broad base of mortgage - backed securities levered with short - term financing arranged by the trusts» managers.

Weighting a basket of securities by market value has been the industry standard for decades, and for good reason.

Under the SEC proposal, an ETF would be defined as a registered open - end management investment company that: • Issues (or redeems) creation units in exchange for the deposit (or delivery) of basket assets the current value of which is disseminated per share by a national securities exchange at regular intervals during the trading day; • Identifies itself as an ETF in any sales literature; • Issues shares that are approved for listing and trading on a securities exchange; • Discloses each business day on its publicly available web site the prior business day's net asset value and closing market price of the fund's shares, and the premium or discount of the closing market price against the net asset value of the fund's shares as a percentage of net asset value; and • Either is an index fund, or discloses each business day on its publicly available web site the identities and weighting of the component securities and other assets held by the fund.

The point here is that people, mostly financial advisers, think they have magic powers and can tell if a very large basket of stocks in an ETF is currently overpriced or underpriced relative to the value of the underlying securities it holds.