Ask Question
BusinessBusiness
6 August, 19:17

Calculate the net asset value of an ETF with portfolio holdings equal to $100 per share in market value and an expense ratio of 0.25%

+1
Answers (1)
  1. 6 August, 19:23
    0
    Net Asset Value of ETF = $99.75

    Explanation:

    Net asset value of an ETF

    The net asset value of an ETF represents the value of each share's portion of the fund's underlying assets and cash at the end of the trading day. ETFs calculate the NAV at 4:00 p. m. Eastern Time after the markets close. The NAV is used to compare the performance of different funds, as well as for accounting purposes. The ETF also releases its current daily holdings, amount of cash, outstanding shares, and accrued dividends, if applicable. For investors, ETFs have the advantage of being more transparent. Mutual funds and closed-end funds do not have to disclose their daily holdings. In fact, mutual funds usually disclose their holdings only quarterly.

    Calculation

    Market Value per share = $100

    Expense Ratio = 0.25%

    Net Asset Value = Market Value per share * (1 - Expense Ratio)

    Net Asset Value = $100 * (1 - 0.0025)

    Net Asset Value = $100 * 0.9975

    Net Asset Value = $99.75
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Calculate the net asset value of an ETF with portfolio holdings equal to $100 per share in market value and an expense ratio of 0.25% ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Over concerns with rising food prices, Israel passed the Food Act in 2014. Amongother things, the Act required supermarkets to post online all of the prices of products they sold intheir brick-and-mortar stores.
Answers (1)
You are planning to make annual deposits of $5,850 into a retirement account that pays 8 percent interest compounded monthly. how large will your account balance be in 25 years?
Answers (1)
A company produces 300 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactures the circuit in-house but is considering outsourcing the circuits at a contract cost of $34 each.
Answers (2)
In which one of the following situations is the political process most likely to result in both the acceptance of efficient (productive) programs and the rejection of inefficient (counterproductive) political activities? a.
Answers (1)
In contrast to traditional behavior management procedures, Positive Behavior Support emphasizes A. adjusting adult behavior (e. g. routines, responses) B. teaching functional behaviors to replace undesired behavior C.
Answers (1)
New Questions in Business
Which of the following choices is NOT a use for project plans in the workplace? A. event planning B. teacher lesson plans C. architectural blueprints D. memos about new corporate meeting times
Answers (1)
Maria is worried about the representativeness of her study. she is conducting interviews, but each one seems to last at least 3 hours. given that she has one month to collect her data, what strategy might she use to increase her sample size?
Answers (1)
What are some drawbacks and risks to a broad generic strategy? To a focused strategy?
Answers (1)
Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised at $810,000.
Answers (1)
Since February, the Federal Reserve has raised its short-term interest rate target five times, and because of the economy's continued strength, analysts have been predicting for weeks that the target will be raised again in November.
Answers (1)
Home » Business » Calculate the net asset value of an ETF with portfolio holdings equal to $100 per share in market value and an expense ratio of 0.25%
Sign Up Forgot Password?