We all know that the average net value of the fund is offered to the public once a day, and the average public offering of the fund is cash redemption.
However, ETFs are different. ETF is redeemed through physical purchase and listed on the exchange, and the price of ETF changes constantly in real time.
Assuming that ETF publishes its net value once a day, and there is no real-time net value as a reference, then the transaction price of ETF may deviate greatly from the internal net value of ETF share.
After introducing the reference net value of fund shares into ETF trading, it can accurately reflect the real-time net value and improve the transparency of trading.
The reference net value of fund shares is generally clearly defined in the fund prospectus. If the fund manager or the fund manager entrusts China Securities Index Co., Ltd. to calculate the reference net value of fund shares according to the purchase and redemption list and the situation that the securities in the portfolio are suspended after the relevant stock exchanges start trading, the reference net value of fund shares will be published by Shenzhen Stock Exchange during trading hours for investors' reference when trading, purchasing and redeeming fund shares.
Generally speaking, mainstream trading software can check the reference net value of fund shares. The reference net value of fund shares is not 100% accurate, and there will be some deviations, so it is a reference value.
Of course, we can measure the accuracy of the reference net value of fund shares through some methods. At the end of each trading day, there will be a closing reference net value of fund shares, which can be used to compare with the closing net value of ETF shares on that day, so that we can have a more intuitive feeling.