ETF's iNAV - Fidelity

Please enter a valid email address Please enter a valid email address Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: " Your email has been sent.

Mutual Funds and Mutual Fund Investing - Fidelity Investments

Clicking a link will open a new window. ETF investing has often been lauded for its transparency. After all, what investor doesn't want to know what they own and how much it's worth? Mutual funds have been offering that information for decades with net asset value (NAV)—but only at the end of each trading day. That's too infrequently for ETF investors, who need up-to-the-minute pricing from which to value their intraday trading opportunities. The intraday net asset value (“iNAV”) is one method of establishing that point of reference. iNAV provides an intraday indicative value of an ETF based on the market values of its underlying holdings. The value is calculated by the listing exchange and then disseminated to the public every 15 seconds. The first step to calculating an ETF’s iNAV starts with its calculation basket. The calculation basket is a basket of securities that represents an ETF shareholder’s residual ownership in the fund’s underlying securities. Essentially, it’s a representation of the value of a single share of the ETF. To calculate iNAV, the calculation agent multiplies the last available price of each security in the calculation basket by the number of shares of that security included in the calculation basket. After doing this for each security in the calculation basket, the totals are summed, cash components are added, and liabilities are subtracted. To convert the final result to a “per share” value, the calculation agent divides the final result by the number of ETF shares in a creation unit. Here’s a quick snapshot of the formula: Find ETFs and ETPs that match your investment objectives. Access unique data and search capabilities. Learn how ETFs shares are created and redeemed.

Please enter a valid e-mail address Please enter a valid e-mail address Important legal information about the e-mail you will be sending. By using this service, you agree to input your real e-mail address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an e-mail. All information you provide will be used by Fidelity solely for the purpose of sending the e-mail on your behalf.The subject line of the e-mail you send will be "Fidelity.com: "

Your e-mail has been sent.

Your e-mail has been sent. Article copyright 2014 by ETF.com. Reprinted with permission from ETF.com. The statements and opinions expressed in this article are those of the author. Fidelity Investments cannot guarantee the accuracy or completeness of any statements or data. ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund. Exchange-traded products (ETPs) are subject to market volatility and the risks of their underlying securities, which may include the risks associated with investing in smaller companies, foreign securities, commodities, and fixed income investments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. ETPs that target a small universe of securities, such as a specific region or market sector, are generally subject to greater market volatility, as well as to the specific risks associated with that sector, region, or other focus. ETPs that use derivatives, leverage, or complex investment strategies are subject to additional risks. The return of an index ETP is usually different from that of the index it tracks because of fees, expenses, and tracking error. An ETP may trade at a premium or discount to its net asset value (NAV) (or indicative value in the case of exchange-traded notes). The degree of liquidity can vary significantly from one ETP to another and losses may be magnified if no liquid market exists for the ETP's shares when attempting to sell them. Each ETP has a unique risk profile, detailed in its prospectus, offering circular, or similar material, which should be considered carefully when making investment decisions. 700888.3.1

Footer

Stay Connected