Raj Dhamodharan

Troubled By ETF Tracking Failures? Try ETNs

hi H Man, another point that I did not mention in the reasons for lag (but you did) is the expenses.
randv
randv.blogspot.com
Investing, Globalization, Personal Finance

Troubled By ETF Tracking Failures? Try ETNs

Indicative value is determined by fund owner (barleys) using a simple formula based on the underlying index (in this case MSCI India Total returns Index). You can say that this is the intrinsic value of the security. Market returns are based on the bid/ask spread on that day. It is always possible that these two are very close but always not perfect match due to the demand or lack there of for the security that day.

Another item you would notice is that the indicative value for INP is trailing the Index performance by few basis points. This again is a reflection of the efficiency with which they are able to track the index. I am sure this complicated by the fact that the underlying market is overseas.
randv
randv.blogspot.com
Investing, Globalization, Personal Finance