In search of a bargain

Nick Sudbury assesses how ETF investors can achieve better prices The performance of an ETF is normally calculated by reference to its NAV or fair value, which reflects both the index return and the tracking error. This provides an objective measure of what the instrument has delivered, but it does not tell the full story. That is because the return for a particular investor depends on how the market price compares to fair value at the point of purchase and sale. Those who buy and sell ETFs do so at the prevailing bid and offer rather than the underlying NAV (net asset value). This mean...