Intraday Indicative Value
As an ETF trades throughout the day and its market price changes,
investors still need to know an approximation of the ETF’s NAV.
That’s where the intraday indicative value (IIV) comes in. Understanding
the IIV starts with realizing that this term is also known
by other names, such as Indicative Value (IV), Intraday Optimized
Portfolio Value (IOPV), Intraday Portfolio Value (IPV), and
Underlying Trading Value (UTV). This value is calculated by the
exchange using a Portfolio Composition File that is provided by
the ETF advisor. The exchange publishes the IIV every 15 seconds
throughout the trading day. It approximates the ETF’s net asset
value, and because it’s updated so often investors always know
the approximate value of the ETF. The indicative value does
not reflect the value at which the ETF share can be created or
redeemed—the NAV reflects this. Each ETF has its own ticker for
the Intraday Indicative Value.
Gauging Each Price
When and how investors use the various prices when managing
ETFs depends on what they need to know. For instance, market
price tells an investor the last trading price and is the price that
appears in your newspaper each day. The NAV tells the investor
the true value of an ETF, while the IV—again, calculated every 15
seconds—enables an investor to have a real-time estimate of the
NAV. The IV can serve as a guide when placing market orders or
limit orders to trade.
ETFs are subject to risks similar to those of stocks and may not be suitable for
all investors. Investment returns and principal value will fluctuate so that when
shares are redeemed, they may be worth more or less than original cost.
Securities are not guaranteed by any bank, are not insured by the FDIC or any
other agency, and involve investment risks, including the possible loss of the principal
amount invested.
RydexShares are distributed by Rydex Distributors, Inc., an affiliate of Rydex Investments.
Rydex Investments 9601 Blackwell Road Suite 500 Rockville, MD 20850
800.820.0888 Send us your comments
For more complete information regarding Rydex funds, call 800.820.0888 or click here for a prospectus. Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. The fund's prospectus contains this and other information about the fund. Read the prospectus carefully before you invest or send money.
Key Points to Remember
ETF market price is determined by the price of underlying securities, market supply and demand forces
and arbitrage opportunities.
An ETF’s net asset value (NAV) represents the value of the ETF’s underlying
securities as of market close.
Intraday Indicative Value is updated every 15 seconds and represents the approximate NAV throughout the
day.
Investors may purchase shares
at a premium or discount to the NAV.
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