Question

There are several ETFs listed on the American Stock Exchange (AMEX). One of them is iShares—Switzerland. This ETF tracks the Morgan Stanley Capital International (MSCI)—Switzerland index, which is based on several stocks that trade on the Swiss Exchange. The Swiss Exchange is open from 9 a.m.to 5:30 p.m. Swiss time and the AMEX is open from 9:30 a.m. to 4 p.m. U.S. Eastern Standard Time (EST). The U.S. EST lags the Swiss time by six hours. Discuss whether the ETF price and its NAV would fluctuate or stay the same during the time period when the AMEX is open.

Answer 1

Although the exchange in switzerland is close, the action os the company and it's latest development is still monitered. Any favourable move or adverse move will impact the prices which will be reflected in US market. People will buy and sell the units thus the price of ETF might fluctuate . But NAV is based on the price of the shares which will change only after singapore exchange will open, Thus it will not change.

All in all, the ETF price will change but not the NAV