What Happened to INR (the ETF)?

Discussion in 'ETFs' started by Cyrix, Oct 13, 2019.

  1. Cyrix

    Cyrix

    INR (the INRUSD ETF) jumped from 42 to 94, more than doubled, within just a few days last month.

    Why?

    I have never seen anything like that for a currency ETF.

    upload_2019-10-13_16-35-45.png
     
    Last edited: Oct 13, 2019
  2. Google is your friend.


    https://finance.yahoo.com/news/etf-week-indian-premiums-returns-181500459.html?.tsrc=rss

    Quote:

    Creations Halted, Premiums Develop

    Premiums and discounts arise over the course of normal trading in exchange-traded products, but usually, profit-minded authorized participants quickly arbitrage out any price discrepancies that may arise.

    When exchange-traded products close to creations, however, they eliminate the ability of authorized participants to create new shares of that product. There's no pressure valve with which they can relieve the normal premiums and discounts that come up, and as such, trading premiums often develop and persist.
     
    Nobert likes this.
  3. zdreg

    zdreg

    Last edited: Oct 14, 2019
    Nobert likes this.
  4. Cyrix

    Cyrix

  5. zdreg

    zdreg

    be serious.
     
  6. trend2009

    trend2009

    I had Inr bought at 42, waited a long time no volume and sold at 56.
     
  7. maxinger

    maxinger

    the problem with non major, exotic currency
    is that you probably can't trade its futures (only spot forex).

    volume is going to be very low, spread very wide,
    and it probably move after many months / years
     
  8. Sig

    Sig

    Probably one of those "the market can remain irrational far longer than you can remain solvent" kind of things. I remember some of the old closed end funds used to trade at a pretty consistent discount or premium to NAV for years, and this is now pretty much the same thing as they were.
     
  9. Cyrix

    Cyrix

    Were those consistent discounts/premiums as extreme as this case, which is over 100%?
     
    #10     Oct 15, 2019