S&P Index Under Performed S&P (7/12)

[chevyz07]

Hey PF...question that I can't seem to wrap my head around. My primary investments are in IVV, an S&P tracking ETF. Yesterday, the fund returned -0.04% where to S&P returned +0.31% (

https://imgur.com/CgFnb6I

). I know it's not significant, but usually it tends to move in lockstep with each other.

Any insight would be appreciated.

 

[kimnerdy]

@chevyz07 http://us.ishares.com/product_info/fund/overview/IVV.htm

See NAV vs. Price.

If you are going to invest in ETFs, you need to understand the concept of discount or premium to NAV. It is currently at a discount to NAV.

Usually liquid and popular ETFs will correct quickly

 

[ammi]

@chevyz07 Nothing to worry about. Different S&P tracking funds will have slightly different compositions.

 

[christianspirit]

@chevyz07 I was looking into this myself yesterday. I have noticed that S&P 500 went up, while ETFs like IVV, SPY, and VTI all dipped at the end.

I'm not 100% sure, but I think S&P 500 closes at 4pm Eastern. ETFs, however, trade for another 15 minutes. That may explain the difference.

 

[mingyanwong]

@chevyz07 $1100 for a 1BR?

makes me cry

 

[lisaluvsgod]

@mingyanwong In some cities, that's a bargain.

 

[mingyanwong]

@lisaluvsgod Indeed, why do you think I'm crying?

 

[pencil_on_paper]

@lisaluvsgod I'm at $1935 for a 1 BR myself (DC area)

 

[natalie1rodri]

@pencil_on_paper ouch. DC area as well, most I've had to pay is 1500. I bet your place is in an awesome location

 

[pencil_on_paper]

@natalie1rodri I wouldn't say my place is awesome but it's next to the metro; that's probably why it's so expensive.

 

[nobody888]

@pencil_on_paper I spent a few days in D.C. It's hellish swamp, and the only good things are the momuments and smithsonian museums. WHY DO YOU LIVE THERE!?

No offense intended.

 

[pencil_on_paper]

@nobody888 I live there because my employer is there

Yeah, DC is fun as a tourist location but the tourist attractions wear off after you've been there so many times...