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  #1  
Old 19th February 2009, 08:36 AM
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Default Is ETF Providing Arbitrage?



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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Old 19th February 2009, 08:49 AM
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Originally Posted by muralisankars View Post
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.
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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Old 19th February 2009, 06:02 PM
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What kind of arbitrage are you thinking about?
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  #4  
Old 20th February 2009, 08:59 AM
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What kind of arbitrage are you thinking about?
I don't understand your question properly....

Buy Anyhow, I am asking about the Buying in Open Market & selling in Fund House or vise versa....
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