Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
ATFX

FCA License No: 760555

ATFX-search-icon
Client Portal
Start trading
rch

ETF attracts investors as prices start low this week

The last week of April has commenced with a negative trend for Exchange Traded Funds otherwise known as ETF. To no surprise, most investors seem to be booking their profits ahead of the month-end, with some others considering it an opportunity for new investors to come in as most ETF traders target the lowest support for their entry.

What are some significant factors affecting ETF prices?

Current prices of some US ETFs at the beginning of the new week:

  • Global XMSCI Argentina ETF (#ETF- ARGT) is down by 6% with its price at $32.76.
  • Xtrackers Harvest CSI 300 China A-Shares (#ETF - ASHR) is down by 5.5%, priced at $30.67.
  • SPDR Dow Jones Industrial Average ETF (#ETF DIA) is down by 1.2%, its price at $338.15.
  • iShares MSCI EAFE Index ETF (#ETF EFA) is down by 4.2%, priced at $70.42.
  • iShares MSCI Peru ETF (#ETF - EPU) is down by 7% with the price at $33.44.
  • iShares MSCI Malaysia ETF (#ETF - EWM) is down by 6.2%, priced at $24.94.
  • iShares MSCI Indonesia ETF (#ETF-EIDO) is down by 3.5% with price at $24.61.
  • iShares MSCI Emerging Markets ETF(#ETF-EEM) is down by 2.7% with price at $42.37.

 

Factors affecting ETF prices

Fair Value: In a regular market, ETFs are priced according to their fair value. The concept of fair value suggests that each ETF has an intrinsic worth based primarily on the value of the underlying securities the ETF holds. This fair value often changes throughout the day as the value of the underlying securities changes too. Investors are usually attracted to buying a given ETF during the day when prices are low.

Value of Underlying securities: Similarly, the prices of ETFs are affected by the value of the underlying basket of protection and the price at which a market maker can hedge the exposure. ETF shares, as we know, are created in exchange for a basket of securities. When an authorized participant (AP) — say a financial institution, for instance, makes over 100,000 shares in exchange for securities worth US$1 million. Presuming the absence of any other cost, each ETF share would be worth US$10. The prices could further increase during the day if more investors were to purchase the shares.

 

There is a great buying opportunity for these ETFs, especially for long term investors. We can expect prices to soon recover from this region once more.

Last Updated: 26/04/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

Recent news

Recent news
Ethereum prices seek support at $1900

The cryptocurrency market, Ethereum included, being bearish since the beginning of 2022 ha...

Recent news
AUD denied by resistance 0.70675 as employment data improves

The Australian dollar (AUD/USD) performed below expectations yesterday despite the news of...

Stellar reversed from resistance zone

Stellar cryptocurrency recently reversed down from the resistance zone lying between the k...

Recent news
How to Mitigate Inflation by Rebalancing Asset Allocation?

From quantitative easing during the pandemic period to the tightening of monetary policies...

Litecoin Reversed from Support Zone

Litecoin cryptocurrency recently reversed up strongly from the support zone lying between ...