From a few minutes googling, I haven't found any ETFs other than Vanguard that seem to use fair value pricing. I assume NAV is generally the actual market pricing of underlying assets, even though these prices are often stale. I've seen descriptions of NAV calculations before, I believe they are either in the annual report, prospectus, or SAI. For example, the daily NAV might be calculated around the time US markets close, using the most recent security prices available. Depending on the index, it might be calculated at a different time than the fund calculates NAV. But unless there are markets that close after the US markets but on the same day, this shouldn't matter.jhfenton wrote: ↑Thu Jan 18, 2018 3:02 pmThe key is longer-term data. Over multiple years any first-day tracking issues or any first-year growing pains get averaged out.
One thing that causes end-date problems for Vanguard and most international mutual funds is fair value pricing. Indexes don't use fair-value pricing. (snip)
A few years ago I tried to figure this all out and gave up, deciding to try to use periods of 3 years or longer to compare NAV to the fund's index. Which keeps me away from new international/EM funds that aren't market weighted.
If I ever try to average out the NAV vs index comparison over a few readings (such as over a few months) I'll try to post it on the forum. ishares makes it very easy! You can select the end of the time period on the web page. So we could calculate NAV return vs index return since inception, ending Dec 31, Nov 30, and Oct 31, and compare and average the 3 readings. I suppose this won't fix an odd reading at the period starting day, but should reduce the error of the ending day. I don't plan to buy anytime soon so am not trying this yet.