Why is an ETF, which is tracking foreign equities, ticking in my local time zone?
.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty{ margin-bottom:0;
}
up vote
10
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?
etf
edited Nov 28 at 19:30
Glorfindel
3291311
asked Nov 28 at 8:30
Dawny33
17510
add a comment |
up vote
10
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?
etf
edited Nov 28 at 19:30
Glorfindel
3291311
asked Nov 28 at 8:30
Dawny33
17510
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
10
down vote
favorite
up vote
10
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?
etf
edited Nov 28 at 19:30
Glorfindel
3291311
asked Nov 28 at 8:30
Dawny33
17510
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?
etf
etf
edited Nov 28 at 19:30
Glorfindel
3291311
asked Nov 28 at 8:30
Dawny33
17510
edited Nov 28 at 19:30
Glorfindel
3291311
asked Nov 28 at 8:30
Dawny33
17510
edited Nov 28 at 19:30
Glorfindel
3291311
edited Nov 28 at 19:30
Glorfindel
3291311
edited Nov 28 at 19:30
Glorfindel
3291311
3291311
asked Nov 28 at 8:30
Dawny33
17510
asked Nov 28 at 8:30
Dawny33
17510
asked Nov 28 at 8:30
Dawny33
17510
17510
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
17
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
10.1k22637
add a comment |
up vote
4
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
1412
New contributor
Robin Salih is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
17
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
10.1k22637
add a comment |
up vote
17
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
10.1k22637
add a comment |
up vote
17
down vote
accepted
up vote
17
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
10.1k22637
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
10.1k22637
answered Nov 28 at 9:36
DumbCoder
10.1k22637
answered Nov 28 at 9:36
DumbCoder
10.1k22637
answered Nov 28 at 9:36
DumbCoder
10.1k22637
10.1k22637
add a comment |
add a comment |
up vote
4
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
1412
New contributor
Robin Salih is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |
up vote
4
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
1412
New contributor
Robin Salih is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |
up vote
4
down vote
up vote
4
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
1412
New contributor
Robin Salih is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
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
1412
New contributor
Robin Salih is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered Nov 28 at 16:02
Robin Salih
1412
New contributor
Robin Salih is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
answered Nov 28 at 16:02
Robin Salih
1412
answered Nov 28 at 16:02
Robin Salih
1412
1412
New contributor
Robin Salih is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
Robin Salih is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
Robin Salih is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
add a comment |
add a comment |
Thanks for contributing an answer to Personal Finance & Money Stack Exchange!
- Please be sure to answer the question. Provide details and share your research!
But avoid …
- Asking for help, clarification, or responding to other answers.
- Making statements based on opinion; back them up with references or personal experience.
To learn more, see our tips on writing great answers.
Some of your past answers have not been well-received, and you're in danger of being blocked from answering.
Please pay close attention to the following guidance:
- Please be sure to answer the question. Provide details and share your research!
But avoid …
- Asking for help, clarification, or responding to other answers.
- Making statements based on opinion; back them up with references or personal experience.
To learn more, see our tips on writing great answers.
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
StackExchange.ready(
function () {
StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmoney.stackexchange.com%2fquestions%2f102419%2fwhy-is-an-etf-which-is-tracking-foreign-equities-ticking-in-my-local-time-zone%23new-answer', 'question_page');
}
);
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Sign up or log in
StackExchange.ready(function () {
StackExchange.helpers.onClickDraftSave('#login-link');
});
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Sign up using Google
Sign up using Facebook
Sign up using Email and Password
Post as a guest
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
Required, but never shown
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