Why NAV is not matching with market price

skaranam · Mar 7, 2006

Please look at this ETF. The NAV is much less than the market price. What could be the reason? The price went down by 10% in the last two days for no obvoius reason.

BDGBDG · Mar 7, 2006

Any way to arb this?

Free Thinker · Mar 7, 2006

Quote from skaranam:

Please look at this ETF. The NAV is much less than the market price. What could be the reason? The price went down by 10% in the last two days for no obvoius reason.

this happens when a theme(inda) is hot but there are few easy ways to invest in that country. hot money wants in so they bid up anything that gets them exposure. eventually the premium should come in.

BDGBDG · Mar 7, 2006

Can you short ETFs?

Free Thinker · Mar 7, 2006

Quote from BDGBDG:

Can you short ETFs?

yes if you can get a borrow. i tried on ib. says not available

skaranam · Mar 7, 2006

I own 600 shares. Is it time to sell?

alanm · Mar 7, 2006

Make sure there wasn't a split or adjustment in one of the component stocks and the site you're looking at doesn't correctly calc the NAV.

Just happened to me with SMH. I missed the BRCM split. The HOLDRS site is still wrong, too.

PhiSigmaIota · Mar 7, 2006

I trade this ETF almost everyday and I was short from Friday's close. I have covered my position yesterday(Monday). I wish I held one more day:-(
Anyway it came in a lot in 2 days as there was a Barron's article about Indian closed end funds over the weekend and they mentioned that India resembled Thai market before the crash. As this fund was trading at a hefty premium, the sell off was heavy.
IFN NAV data updates every Friday, IIF updates on a daily basis.
Why was IFN trading at a huge premium? Because there was a major short squeeze in the stock and everybody's grandma wanted to have a piece of something Indian, of course Bush visit accelerated this fund's rise further.

Bitstream · Mar 7, 2006

three bombs went off in India, can't remember exactly where but it was all over da news...that could have caused da decline.

freehouse · Mar 7, 2006

Quote from skaranam:

Please look at this ETF. The NAV is much less than the market price. What could be the reason? The price went down by 10% in the last two days for no obvoius reason.

I believe that the India Fund is not an ETF, but a closed end fund. Thus, a closed end funds NAV does not have to track its share price.