ETF折價

ETF (Exchange Traded Fund) is an exchange-traded fund, also known as an index stock fund. It refers to an index fund whose buying and selling methods are the same as stocks. The price of an ETF is determined by market supply and demand and may be lower or higher than its net value (NAV), which is the market value of the basket of stocks or other assets it holds. When the market price of an ETF is lower than its net value, it is called an ETF discount; conversely, when the market price of an ETF is higher than its net value, it is called an ETF premium.

Causes and effects of ETF discounts

1. The reasons for ETF discounts may be as follows:

Insufficient market liquidity: When there are insufficient people or trading volume buying and selling ETFs in the market, it may cause deviations in the market price and net value of the ETF. In addition, if the constituent stocks of the ETF also lack liquidity in the market, it may affect the calculation and adjustment of the ETF's net value.

Market efficiency is not high: When factors such as information asymmetry, friction costs, and transaction restrictions exist in the market, it may prevent market participants from conducting arbitrage transactions on ETF discounts and premiums, so that the market price and net value of ETFs cannot effectively converge.

Market sentiment fluctuations: When emotion-driven behaviors such as panic, fanaticism, and overreaction occur in the market, it may cause changes in investor demand or supply for ETFs, thereby affecting the relationship between the market price and net value of ETFs.

Market time differences: When the constituent stocks of an ETF trade in different markets or time zones, it may cause a lag or lead between the net value of the ETF and the market price. For example, futures ETFs based on foreign futures indexes use futures contracts in the European and American markets as the underlying to calculate the net value, and there are risks caused by time differences.

2. The impact of ETF discounts on investors may be as follows:

Impact on investment returns: When investors buy or sell ETFs, if they encounter a discount or premium, it may affect the actual returns they receive. For example, if an investor buys an ETF at a discount and sells an ETF at a premium, his return will be higher than the underlying index; conversely, if an investor buys an ETF at a premium and sells an ETF at a discount, his return will be higher than the underlying index. will be lower than the underlying index.

Arbitrage opportunities arise: When there is a significant discount or premium between the market price and net value of an ETF, some professional market participants, such as Authorized Participants (AP) or arbitrageurs, may be attracted to conduct arbitrage transactions, thus shrinking the ETF. The range of discount and premium. For example, when an ETF appears at a discount, AP or arbitrageurs can subscribe to the ETF from an investment credit company and sell the ETF or its constituent stocks in the market at the same time, thereby obtaining risk-free profits; conversely, when an ETF appears at a premium, AP or arbitrage Investors can buy back ETFs from investment credit companies and at the same time buy ETFs or their constituent stocks in the market to obtain risk-free profits.

Increased investment risks: When ETFs experience discounts or premiums, investors may face some additional risks, such as liquidity risk, market risk, exchange rate risk, etc. For example, if an investor buys an ETF at a discount and sells an ETF at a premium, he or she may face the risk of being unable to buy or sell the ETF in the market; if an investor buys a foreign component ETF, linked ETF or For overseas ETFs, they may face the risk of exchange rate fluctuations between the fund's denomination currency, trading currency and the currency used for investment.