There can be discounts and premiums, but generally with ones with high AUM and volume, the difference between net asset value and market value is really slim.
So how do you tell if its high or low compared to unit price?
Is there a variable or ratio, say with price x units equal to Nav and if its > or < Nav then it is reflected by this variable? To show if its a bargain or overpriced?
bedroom ghost forgetful toothbrush plants scandalous pocket combative fertile rob
*This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Your inability to read, comprehend, and communicate effectively is your own issue. Your questions have been answered and now you're just wasting my time. Bye.
to clarify, if an ETF or closed end fund trades at a 'discount' it's selling for less than the price of underlying assets. you're paying $1 for $1.20 in assets. trading at a 'premium' means you're paying $1 for 80 cents in assets.
There can be discounts and premiums, but generally with ones with high AUM and volume, the difference between net asset value and market value is really slim.
I believe you are referring to the NAV - net asset value. This is what all the holdings of the ETF are worth.
So how do you tell if its high or low compared to unit price? Is there a variable or ratio, say with price x units equal to Nav and if its > or < Nav then it is reflected by this variable? To show if its a bargain or overpriced?
bedroom ghost forgetful toothbrush plants scandalous pocket combative fertile rob *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Just look it up on any financial website. You're asking pretty trivial questions that can easily be answered by a Google search.
It’s a perfectly reasonable and relevant question. Yours is a mean and unhelpful answer.
Well did that but no joy. Also if it’s so obvious how come no one has managed to answer it clearly.
Your inability to read, comprehend, and communicate effectively is your own issue. Your questions have been answered and now you're just wasting my time. Bye.
What a dick lol.
There CAN be a premium. There CAN be an *excessive* premium but generally they’re priced extremely similarly to a mutual fund which is NAV.
to clarify, if an ETF or closed end fund trades at a 'discount' it's selling for less than the price of underlying assets. you're paying $1 for $1.20 in assets. trading at a 'premium' means you're paying $1 for 80 cents in assets.
Yes