Rebecca Katz: So Joel, I understand that ETFs have a net asset value and also a market price. What's the difference between the two?
Joel: So the net asset value is the value of the securities in the portfolio or the value of the fund if you will. So you take the assets and the liabilities, and you compute a per share price, and that's sort of the value of the portfolio. The market price is where you're able to transact in the marketplace for the ETF.
And ETFs are really structured so that the market price can be very close to the net asset value, but it could deviate a little bit over short periods of time given certain supply and demand characteristics.
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