Exchange Traded Funds (ETFs) are single stocks that track the
performance of an index, such as the NASDAQ-100 Index or the NASDAQ Composite
Index. NASDAQ sponsors and licenses several ETFs, all of which are listed and
traded on NASDAQ as the primary market, except iShares NASDAQ Biotechnology:
For the NASDAQ-listed ETFs, NASDAQ posts the ETF daily valuations under the
Trading Data section of NASDAQTrader.com (http://www.nasdaqtrader.com/asp/etf.asp
).
With a few exceptions, NASDAQ ETFs essentially trade like all other equity
securities that are listed on NASDAQ
ETFs offer the advantage of trading an index portfolio with the
ease of stock trading. Investors can purchase ETF shares on margin, short sell
shares, or hold for the long term. Investors also achieve market exposure
consistent with the index on which they are based, through one security. ETFs
are also designed to be cost efficient because they are based on an index,
rather than being actively managed.
NASDAQ calculates the Intra-day Portfolio Value (IPV) for the listed ETFs and
disseminates the value through NIDS. Expressed as dollar amount per share, the
IPV will be disseminated from 9:30:15 a.m. to 5:16 p.m., ET. Between 4:01:30
and 5:15 p.m., E.T., NASDAQ will recalculate the closing IPV value to reflect
any cancels and corrections that may occur in component securities. The IPV can
also be found on the NASDAQ Workstation, either real-time through the “Market
Mind” window or through NIDS.
Daily Valuation Data:
NASDAQ also disseminates daily valuation information for the listed ETFs over
NIDS and provides the Net Asset Value per Share, the Estimated Cash per Share
(also known as Net Accrued Dividend per Share), the Estimated Cash per Creation
Unit, the Total Cash per Creation Unit and the Total Shares Outstanding of the
fund.
