SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: set who wrote (31343)10/12/1998 8:08:00 PM
From: Haim R. Branisteanu  Respond to of 94695
 
Shahar, I am not familiar with the spreads of SPY and DIA versus the indexes.

Sorry,

Haim



To: set who wrote (31343)10/12/1998 10:24:00 PM
From: Moominoid  Read Replies (1) | Respond to of 94695
 
Do they normally
trade at a discount or is that a meaningful divergence?

Two factors cause them to deviate from the index:

1. The price includes dividends paid out by companies but not yet distributed to holders of SPY or DIA.

2. Supply and demand. In the short-run they are a closed end fund, in the longer run new units are created. If there was a big creation of units that could depress the price I guess?

David


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News