NAV is the price per share at which each fund issues and redeems shares. It is calculated by the fund accountants in accordance with the standard formula for valuing mutual fund shares at the close of regular trading (normally 4:00 p.m. eastern time) every day the New York Stock Exchange is open.
Bid/Ask Midpoint (Market Price)
The midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated (usually 4:00 pm eastern time for most iShares Funds).
Closing Price (Last Trade)
The Closing Price is the price of the last reported trade on any major market.
The amount an iShares Fund is trading above the reported NAV expressed as a percentage of the NAV.
The amount an iShares Fund is trading below the reported NAV expressed as a percentage of NAV.
Exchange Trading Symbol
The Exchange Trading Symbol is used to find the price at which each iShares Fund last traded on the stock exchange it is listed on. Using the symbols provided above, these values can be accessed using any major quotation system such as Bloomberg or Reuters.
NAV & Midpoint are usually calculated at 4:00 p.m. ET for most iShares Funds. Please refer to each Fund's prospectus for more details on NAV determination.
The above chart presents information about the difference between the daily market price for shares of the Fund and the Fund's net asset value. The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated (usually 4:00 p.m. eastern time for most iShares Funds). The vertical axis of the chart shows the premium or discount expressed as a percentage of NAV. The horizontal axis indicates the number of trading days in the period covered by the chart. Each bar in the chart shows the number of trading days in which the Fund traded within the premium/discount range indicated.
Although market makers will generally take advantage of differences between the NAV and the trading price of iShares Fund shares through arbitrage opportunities, there is no guarantee that they will do so.
Why is there a difference between NAV and Closing Price?
A major reason for the difference is that timing discrepancies can exist between the NAV and Closing Price (last trade) reported above. Information is constantly flowing to and among investors, corporations, and financial institutions that affects their outlook on the financial markets and the value of securities. This process, known as price discovery, is why market prices change and evolve throughout the trading day. It is important to note that even when markets are closed, the price discovery process continues 24 hours a day, 7 days a week, 365 days a year.
Possible Timing Discrepancies:
Close of Trading Times: The NAV of the iShares funds normally is calculated using prices as of 4:00 p.m. eastern time. Each iShares Fund normally trades on its respective stock exchange until 4:00 p.m. eastern time.
Time of Last Trade: Trading generally takes place throughout the normal trading hours for iShares Funds on the listing exchange on which it is listed (generally 9:30 a.m. - 4:00 p.m. eastern time). At times, many trades are placed in rapid succession. At other times, little or no trading activity is taking place. It is important to note that the date/time of the last trade (which is recorded as the Closing Price) may not take place at exactly 4:00 p.m. eastern time when the iShares funds normally calculate NAV. The date/time of the last trade sometimes may occur before 4:00 p.m. eastern time. Thus, ongoing price discovery may result in a deviation between the price recorded as the Closing Price and the NAV of the fund shares calculated at 4:00 p.m. eastern time.
Note on international funds: The premiums and discounts shown for international funds may be less accurate due to the difference in closing times between US and international markets. NAVs for most international iShares funds are calculated by using closing securities prices from local markets and Reuters/WM FX rates at 4 p.m. London time. Therefore, during the second part of the US trading day, the NAVs for most international iShares Funds are frozen, yet the market prices for these funds continue to fluctuate to reflect new information. As a result, for most international iShares Funds, the traditional measure of premium/discount (market price / NAV) may be more reflective of different market hours than true trading premium/discounts.