Why is an ETF, which is tracking foreign equities, ticking in my local time zone?
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I have recently bought the N100 ETF, which tracks the Nasdaq 100. This is an Indian ETF.
So, if it is tracking the Nasdaq 100, then why and how is it ticking in my (Indian) timezone?
india etf
edited Dec 3 at 19:50
chicks
12118
asked Nov 28 at 8:30
Dawny33
18010
add a comment |
up vote
11
down vote
favorite
I have recently bought the N100 ETF, which tracks the Nasdaq 100. This is an Indian ETF.
So, if it is tracking the Nasdaq 100, then why and how is it ticking in my (Indian) timezone?
india etf
edited Dec 3 at 19:50
chicks
12118
asked Nov 28 at 8:30
Dawny33
18010
2
It might be interesting to track the movement of the N100 ETF versus the US Nasdaq 100 futures, which trade almost continuously from Sunday 18:00 through Friday 17:00 US/Eastern time.
– Mark Plotnick
Nov 28 at 18:02
add a comment |
up vote
11
down vote
favorite
up vote
11
down vote
favorite
I have recently bought the N100 ETF, which tracks the Nasdaq 100. This is an Indian ETF.
So, if it is tracking the Nasdaq 100, then why and how is it ticking in my (Indian) timezone?
india etf
edited Dec 3 at 19:50
chicks
12118
asked Nov 28 at 8:30
Dawny33
18010
I have recently bought the N100 ETF, which tracks the Nasdaq 100. This is an Indian ETF.
So, if it is tracking the Nasdaq 100, then why and how is it ticking in my (Indian) timezone?
india etf
india etf
edited Dec 3 at 19:50
chicks
12118
asked Nov 28 at 8:30
Dawny33
18010
edited Dec 3 at 19:50
chicks
12118
asked Nov 28 at 8:30
Dawny33
18010
edited Dec 3 at 19:50
chicks
12118
edited Dec 3 at 19:50
chicks
12118
edited Dec 3 at 19:50
chicks
12118
12118
asked Nov 28 at 8:30
Dawny33
18010
asked Nov 28 at 8:30
Dawny33
18010
asked Nov 28 at 8:30
Dawny33
18010
18010
2
It might be interesting to track the movement of the N100 ETF versus the US Nasdaq 100 futures, which trade almost continuously from Sunday 18:00 through Friday 17:00 US/Eastern time.
– Mark Plotnick
Nov 28 at 18:02
add a comment |
2
It might be interesting to track the movement of the N100 ETF versus the US Nasdaq 100 futures, which trade almost continuously from Sunday 18:00 through Friday 17:00 US/Eastern time.
– Mark Plotnick
Nov 28 at 18:02
2
2
It might be interesting to track the movement of the N100 ETF versus the US Nasdaq 100 futures, which trade almost continuously from Sunday 18:00 through Friday 17:00 US/Eastern time.
– Mark Plotnick
Nov 28 at 18:02
It might be interesting to track the movement of the N100 ETF versus the US Nasdaq 100 futures, which trade almost continuously from Sunday 18:00 through Friday 17:00 US/Eastern time.
– Mark Plotnick
Nov 28 at 18:02
add a comment |
2 Answers
2
active
oldest
votes
up vote
20
down vote
accepted
You have some confusion regarding how ETFs work. N100 is traded on Indian stock exchanges so it will tick during opens hours in the Indian market. People are buying and selling it during the open market, so you should expect for prices to change.
You are trading the ETF and not the underlying stocks in the index, which will tick during US market hours. But that doesn't mean the ETF price will go haywire. It will closely mimic the index on which it is based, but not to the exact decimal point, else it opens up itself to arbitrage opportunities.
answered Nov 28 at 9:36
DumbCoder
10.2k22637
add a comment |
up vote
5
down vote
If your ETF is priced in your local currency, INR, then although the underlying stocks aren't ticking, the INRUSD exchange rate is and this alone can explain why the ETF value changes outside US trading hours.
answered Nov 28 at 16:02
Robin Salih
1512
add a comment |
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
20
down vote
accepted
You have some confusion regarding how ETFs work. N100 is traded on Indian stock exchanges so it will tick during opens hours in the Indian market. People are buying and selling it during the open market, so you should expect for prices to change.
You are trading the ETF and not the underlying stocks in the index, which will tick during US market hours. But that doesn't mean the ETF price will go haywire. It will closely mimic the index on which it is based, but not to the exact decimal point, else it opens up itself to arbitrage opportunities.
answered Nov 28 at 9:36
DumbCoder
10.2k22637
add a comment |
up vote
20
down vote
accepted
You have some confusion regarding how ETFs work. N100 is traded on Indian stock exchanges so it will tick during opens hours in the Indian market. People are buying and selling it during the open market, so you should expect for prices to change.
You are trading the ETF and not the underlying stocks in the index, which will tick during US market hours. But that doesn't mean the ETF price will go haywire. It will closely mimic the index on which it is based, but not to the exact decimal point, else it opens up itself to arbitrage opportunities.
answered Nov 28 at 9:36
DumbCoder
10.2k22637
add a comment |
up vote
20
down vote
accepted
up vote
20
down vote
accepted
You have some confusion regarding how ETFs work. N100 is traded on Indian stock exchanges so it will tick during opens hours in the Indian market. People are buying and selling it during the open market, so you should expect for prices to change.
You are trading the ETF and not the underlying stocks in the index, which will tick during US market hours. But that doesn't mean the ETF price will go haywire. It will closely mimic the index on which it is based, but not to the exact decimal point, else it opens up itself to arbitrage opportunities.
answered Nov 28 at 9:36
DumbCoder
10.2k22637
You have some confusion regarding how ETFs work. N100 is traded on Indian stock exchanges so it will tick during opens hours in the Indian market. People are buying and selling it during the open market, so you should expect for prices to change.
You are trading the ETF and not the underlying stocks in the index, which will tick during US market hours. But that doesn't mean the ETF price will go haywire. It will closely mimic the index on which it is based, but not to the exact decimal point, else it opens up itself to arbitrage opportunities.
answered Nov 28 at 9:36
DumbCoder
10.2k22637
answered Nov 28 at 9:36
DumbCoder
10.2k22637
answered Nov 28 at 9:36
DumbCoder
10.2k22637
answered Nov 28 at 9:36
DumbCoder
10.2k22637
10.2k22637
add a comment |
add a comment |
up vote
5
down vote
If your ETF is priced in your local currency, INR, then although the underlying stocks aren't ticking, the INRUSD exchange rate is and this alone can explain why the ETF value changes outside US trading hours.
answered Nov 28 at 16:02
Robin Salih
1512
add a comment |
up vote
5
down vote
If your ETF is priced in your local currency, INR, then although the underlying stocks aren't ticking, the INRUSD exchange rate is and this alone can explain why the ETF value changes outside US trading hours.
answered Nov 28 at 16:02
Robin Salih
1512
add a comment |
up vote
5
down vote
up vote
5
down vote
If your ETF is priced in your local currency, INR, then although the underlying stocks aren't ticking, the INRUSD exchange rate is and this alone can explain why the ETF value changes outside US trading hours.
answered Nov 28 at 16:02
Robin Salih
1512
If your ETF is priced in your local currency, INR, then although the underlying stocks aren't ticking, the INRUSD exchange rate is and this alone can explain why the ETF value changes outside US trading hours.
answered Nov 28 at 16:02
Robin Salih
1512
answered Nov 28 at 16:02
Robin Salih
1512
answered Nov 28 at 16:02
Robin Salih
1512
answered Nov 28 at 16:02
Robin Salih
1512
1512
add a comment |
add a comment |
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2
It might be interesting to track the movement of the N100 ETF versus the US Nasdaq 100 futures, which trade almost continuously from Sunday 18:00 through Friday 17:00 US/Eastern time.
– Mark Plotnick
Nov 28 at 18:02