Articles - ETF
ETF Pricing: NAV, iNAV & Fair Value Explained
ETFs are often praised for being transparent and cost effective. Yet when it comes to pricing, things aren’t as straightforward as they seem.
Imagine you’ve just pre-ordered a limited-edition sneaker. You don’t have the box in your hands yet, but a friend offers you a profit to buy them off you tomorrow. You say yes. That is BTST (Buy Today, Sell Tomorrow) in a nutshell.
Every time you pull up to a petrol pump or check your delivery app, you feel the ripple effects of the global tug-of-war. You check the news, see Brent Crude hitting $110, because of the middle east crisis and it makes sense. But then you open your MCX trading app to go long on oil, and the price you're seeing isn't $110 (₹10,331.30)—it’s lower. Why? Because in the world of oil, where you are and how you get the oil matters more than how "pure" the oil is. Before we get into the where and the how, let’s understand what crude oil is