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Chase freedom q3 202212/3/2023 Indices are unmanaged and do not include the effect of fees, expenses or sales charges. NAVs are calculated using prices as of 4:00 PM Eastern Time. The market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share, and do not represent the returns you would receive if you traded shares at other times. Brokerage commissions will reduce returns. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. While the fund receives premiums for writing the call options, the price it realizes from the exercise of an option could be substantially below the indices current market price. A liquid market may not exist for options held by the fund. By selling covered call options, the fund limits its opportunity to profit from an increase in the price of the underlying index above the exercise price, but continues to bear the risk of a decline in the index. DJIA writes covered call index options on the Dow Jones Industrial Average. common equities, and writing a call option on that same asset with the goal of realizing additional income from the option premium. A covered call option involves holding a long position in a particular asset, in this case U.S. An option is a contract sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed upon price within a certain period or on a specific date. Investors in DJIA should be willing to accept a high degree of volatility in the price of the fund’s shares and the possibility of significant losses.ĭJIA engages in options trading. Concentration in a particular industry or sector will subject DJIA to loss due to adverse occurrences that may affect that industry or sector. Investing involves risk, including the possible loss of principal. market hours while the underlying securities may not, the time lapse between the markets can result in differences between the NAV and the trading price. The premiums and discounts for funds with significant holdings in international markets may be less accurate due to the different closing times of various international markets. Therefore, changing market sentiment during the time difference may cause the NAV to deviate from the closing price. However, it is important to note that the last trade - from which the closing price is determined - may not occur at exactly 4:00 p.m. Trading of Global X funds generally takes place during normal trading hours (9:30 a.m. eastern time), slight differences in this timing may cause discrepancies. Although both the NAV and the daily market price of the Fund are generally calculated based on prices at the closing time of the exchange (generally 4:00 p.m. What causes these time discrepancies?Ĭlose of Trading Times. However, due to the creation and redemption process that is unique to ETFs, market makers are able to minimize these deviations from NAV by taking advantage of arbitrage opportunities. As a result, shareholders may pay more than NAV when they buy Fund shares and receive less than NAV when they sell those shares, because shares are purchased and sold at current market prices. The NAV of the Fund is only calculated once a day (normally at 4:00 p.m. Depending on how this changing information affects investor sentiment, shares of the Fund may deviate slightly from the value of the Fund's underlying assets. Since shares of the Fund trade on the open market, prices are affected by the constant flow of information received by investors, corporations and financial institutions. The primary explanation is that timing discrepancies can arise between the NAV and the trading price of the Fund. dollars.ĭownload Chart Data (.CSV) How can the Fund trade at a premium/discount to its NAV?
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