Assets > than Market Capitalisation for ETF?

Discussion in 'ETFs' started by jayaraja, Sep 5, 2009.

  1. jayaraja


    1.If Market capitalisation is 100 Million, it includes the assets also..correct?

    But i see assets as 102 million which is greater than Market capitalisation.....How is that possible?

    does it means, the fund is having 2 million in cash ????or what does it mean?????

    Thank you.
  2. Most probably the ETF has a lot in cash. Buying and selling stuff costs money & comish so the more cash you sit on the lower the expenses are.

    What ETF is it?

    40 Act ETFs are only required to have 80% in a basket so if it's a non-levered fund with $100M they could have $80mm in stocks (80%), $2mm in futures (10:1 for 20%) and $18mm in cash.