The premiums and discounts for funds with significant holdings in international markets may be less accurate due to the different closing times of various international markets. Therefore, changing market sentiment during the time difference may cause the NAV to deviate from the closing price. However, it is important to note that the last trade - from which the closing price is determined - may not occur at exactly 4:00 p.m. Trading of Global X funds generally takes place during normal trading hours (9:30 a.m. eastern time), slight differences in this timing may cause discrepancies. Although both the NAV and the daily market price of the Fund are generally calculated based on prices at the closing time of the exchange (generally 4:00 p.m. What causes these time discrepancies?Ĭlose of Trading Times. However, due to the creation and redemption process that is unique to ETFs, market makers are able to minimize these deviations from NAV by taking advantage of arbitrage opportunities. As a result, shareholders may pay more than NAV when they buy Fund shares and receive less than NAV when they sell those shares, because shares are purchased and sold at current market prices. The NAV of the Fund is only calculated once a day (normally at 4:00 p.m. Depending on how this changing information affects investor sentiment, shares of the Fund may deviate slightly from the value of the Fund's underlying assets. Since shares of the Fund trade on the open market, prices are affected by the constant flow of information received by investors, corporations and financial institutions. The primary explanation is that timing discrepancies can arise between the NAV and the trading price of the Fund.
dollars.ĭownload Chart Data (.CSV) How can the Fund trade at a premium/discount to its NAV? Russell 2000 Mini Price - Recent market price on 1/10th of the value of the Russell 2000, a market-capitalization weighted index. Russell 2000 Index Price – Recent market price of the Russell 2000 index, a market-cap weighted index of the small-cap segment of the U.S. S&P 500 Mini Price – Recent market price on 1/10th of the value of the S&P 500, a market-capitalization weighted index.ĭow Jones Industrial Average Price – Recent market price of the Dow Jones Industrial Average, a price-weighted index of 30 blue-chip publicly traded companies in the United States.ĭow Jones Industrial Average Mini Price – Recent market price on 1/100th of the value of the Dow Jones Industrial Average, a price-weighted index S&P 500 Price – Recent market price of the S&P 500 Index, a market-capitalization weighted index of the 500 largest publicly traded companies in the United States. Nasdaq 100 Mini Price – Recent market price on 1/5th of the value of the Nasdaq 100, a modified market-capitalization-weighted index. Nasdaq 100 Price – Recent market price of the Nasdaq-100 Index, a free-float modified capitalization index that is designed to measure the equity market performance of the largest non-financial companies listed on the Nasdaq.
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