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FC MARKETS

Markets, money and the economy, explained for American investors

Topic

Net Asset Value

2 articles

ETFs & Funds

How ETFs Trade: Creation, Premiums, Discounts and Bid-Ask Spreads

An ETF trades like a stock but holds a basket of assets, and a mechanism behind the scenes keeps its price close to the value of those holdings. This guide explains creation and redemption, why premiums and discounts appear, what the bid-ask spread costs and how trading habits affect what you pay.

6 min read

ETFs & Funds

How to Evaluate an ETF: Costs, Tracking, Liquidity and What It Holds

Two ETFs with similar names can behave very differently. This guide explains how to read an exchange-traded fund like an analyst: the index and strategy behind it, the expense ratio and tracking difference, bid-ask spreads and premiums to NAV, concentration, fund size, legal structure and the tax details.

6 min read