ETPs and Exchanges

From expenses to transparency: Explore the factors and features common to all ETPs regardless of strategy or asset class.

  • NAV and Fair Value

    A fund’s NAV is the sum of all its assets (the value of its holdings in cash, shares, bonds, financial derivatives and other securities) less any liabilities, all divided by the number of shares outstanding. There's more to it than that though—jump into this article for more information.

  • Premiums and Discounts

    What are premiums and discounts? Why do they matter to ETP investors? Premiums may be a sign that you're paying too much for an ETP and a discount may imply you're receiving too little for your shares—but there's more to it than that.

  • Tracking Difference

    How do you know if an ETF is doing its job well? The simplest answer is “tracking difference”. Tracking difference is investors’ metric for assessing whether they’re getting what they pay for. As such, it’s one of the most important ETP statistics to consider.

  • The Creation/Redemption Mechanism: The Key To ETPs

    The process that enables an ETP to offer the return on a diversified basket of securities is commonly referred to as the “create and redeem mechanism.” The creation and redeem mechanism is the key to understanding how ETFs function, and how as a pooled investment vehicle they are often able to reduce expenses and increase transparency.

  • iNAV And Intraday Fair Value: Your Ticket to Transparency

    ETF investing has often been lauded for its transparency. After all, what investor doesn’t want to know what they own and how much it’s worth?