Buying ETF's @ iNAV

Personal finance
21

No. It won’t be all the time. If the etf has to trade at premium, it will continue to have the same premium.

Okay. In the given case let’s say, iNAV is 100. market price falls from 120 to 100 and the fall was because iNAV actually fell by 30 and the premium was actually increasing. Don’t you think we are over paying?
My point was keeping limit order at iNAV won’t solve this problem.
Then what will? I don’t know. :kissing_closed_eyes:

22

I meant, check the iNAV and then place a limit near it.

1 Like
23

IIUC,
what is being requested is the ability to place an order to purchase an ETF,

  • that spans multiple days/weeks/months,
  • such that the order executes (places a Bid?) ONLY when
    • the Ask and iNAV are within an upfront user-specified threshold.
      (the tracking error that the user is willing to bear the cost of)

Maybe such a feature combined with the ability to place limit-orders,
could enable users to invest in ETFs in a “set-it-and-forget-it” mode. :thinking:

A way to simplify this process,
that would also be a stepping-stone towards the above proposed “set-it-and-forget-it” feature
could be to display inline the iNAV (realtime?)
when attempting to purchase ETFs in the site/app.