
19th February 2009, 08:49 AM
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Senior Member
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Join Date: Jan 2008
Posts: 2,028
Rep Power: 38
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Quote:
Originally Posted by muralisankars
Hi,
ETF Values are differing from one another. i.e. The previous closing price, opening price & fund house's NAV's.
Is this providing any kind of Arbitrage ?
Thanks in Advance.
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I think the fund house NAV can be disregarded by in terms of arbitrage because ETFs are traded on the exchanges in real time. The fund house NAV is declared after trading closes. At the time of submitting a redemption request (if possible) to the fund house, you do not know at what rate your units will be redeemed.
I think that the majority of purchases post-NFO and redemptions are done via the exchanges and not via the fund house.
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