NAV and share price calculation?

Discussion in 'ETFs' started by mizhael, Jun 9, 2010.

  1. Take UCO ULTRA DJ-UBS CRUDE as an example,

    at the end of day (at settle time and NAV calculation time),

    the share price traded on exchange should satisfy the following relation:

    SharePrice * #SharesOutstanding = NAV

    Am I right?
  2. 1) ?.....The share price times the number of shares outstanding would be equal to the market value of the "company". :confused:
    2) UCO appears to have a lot of "tracking error" and maybe gigantic management fees. :(
  3. ETFs do not always trade to NAV. NAV (Net Asset Value) = Total Fund assets / shares outstanding. An ETF can trade even or at a premium or discount to NAV both intraday and at the close print.

    Most ETF websites will show the investor the premium/discount (if any) on a daily basis.

    You would need the price and amount of all the things in the ETF to calculate NAV, as mentioned, the shares outstanding * closing price would be market value or market cap.