Investing In Taiwan

Where to find Taiwan ETF (Exchanged Traded Funds) NAV (Net Asset Value)

The design of ETF is similar to closed-end fund for regular individual investors with small investment assets. As a small investor, instead of direct trade with the fund managing company, we can not buy/sell through exchanges in the normal stock market. Because of the possible unbalance between supply and demand of the ETF, market price might be higher than the NAV (Net Asset Value) when demand is bigger than supply. On the other hand, price can be lower than NAV when the supply is more than the demand.

For long term individual investors with limited asset, it is obviously beneficial to buy ETF at a discount price to its net asset value instead of paying a premium for ETF. Thus knowing where to find the current estimated net asset value during a trading day would be very important. Taiwan Stock Exchange provided a service for those who unable to calculate their own estimate of ETF NAV through the ETF daily asset list. TSE provide the ETF’s estimate NAV in the 【Market Information System】, section【ETF Price Screen】. The last column at the right is the estimated NAV for that ETF. Recently the market price is often lower than its NAV, showing that there is less demand than the supply.

posted by pjhuang @ 4:28 AM