ETF & ETN Indicative Value. What's Your Symbol?
Have you been caught holding an ETF or ETN that collapsed in price? Was the collapse a result of the ETF or ETN premium to indicative value contracting? That was recently the case with TVIX (NASDAQ:TVIX).
Do you know the indicative value of your favorite ETF or ETN? If not, you are not alone. The value is calculated frequently, like every 15 seconds, but finding the symbol is tough.
As a trader in a ETF or ETN it is your responsibility to understand what you are trading, right? In theory market arbitrage should keep an ETF or ETN value within a certain range. Unfortunately,theories and models all have a weakness.
Securing the indicative value symbol may require a phone call to your broker or data provider. And the symbol may differ across platforms.
Let's examine the indicative value symbol for TVIX on Yahoo Finance and Schwab's advanced trading platforms. A quick check on Seeking Alpha for indicative value symbols was unsuccessful.
Yahoo finance is ^TVIX-IV
Schwab StreetSmart Pro platform $TVIX.IV
Schwab StreetSmart Edge platform $TVIX.IV
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.