Assets > than Market Capitalisation for ETF?

[jayaraja]

1.If Market capitalisation is 100 Million, it includes the assets also..correct?

But i see assets as 102 million which is greater than Market capitalisation.....How is that possible?

does it means, the fund is having 2 million in cash ????or what does it mean?????


Thank you.

 

[WinstonTJ]

Most probably the ETF has a lot in cash. Buying and selling stuff costs money & comish so the more cash you sit on the lower the expenses are.

What ETF is it?

40 Act ETFs are only required to have 80% in a basket so if it's a non-levered fund with $100M they could have $80mm in stocks (80%), $2mm in futures (10:1 for 20%) and $18mm in cash.