• Is it possible to conduct purchase and sale transactions using the value of the equity securities? What is the difference between the value of the equity securities and the closing price?

    In the primary market, authorized agents can create/redeem equity securities of iShares ETFs at their value on behalf of final investors. No creation/redemption fees will be applied in these transactions. The closing price is the price of the last transaction of the day in the stock exchange. Meanwhile, the share value is calculated by the manager using the market value of all the assets and liabilities that are part of the fund’s portfolio.

  • What is the purpose of the intraday theoretical value (IOPV)?

    The intraday theoretical value (IOPV) is the theoretical value of a share of the ETF at a given time. It is calculated by multiplying the amount of assets from the basket by their latest price in the Chilean stock exchange. The indicative value is calculated every thirty (30) seconds during the hours of operation of the Chilean stock exchange and serves as a guide for the valuation of the equity securities of the iShares ETFs.

  • Can the ETF be subject to transactions exposed to positive/negative arbitrage in the stock exchange? How can it be minimized?

    There may be positive or negative arbitrage. The differences between the price in the stock market and the indicative target may be positive (positive arbitrage) or negative (negative arbitrage). In any case, arbitrage in such spreads should be performed by market agents during the creation/redemption processes, which tends to keep prices in the Chilean stock exchange close to the fluctuation of the indicative value.

  • How can investors benefit from arbitrage pricing?

    The arbitrage mechanism between the price of the ETF share and the price index for the assets that make up the ETF portfolio can minimize the spread, helping the investors to achieve their goal of obtaining returns on their investment that match the overall performance of the index.

  • What factors contribute to an ETF’s spread?

    Los principales factores que pueden contribuir al spread entre las transacciones de compra y venta de las acciones de un ETF son:

    - The volatility of the assets that make up the fund's portfolio;

    - The liquidity of the assets that make up the fund's portfolio; and

    - Perception by the market's investors.

  • Can I affect the market by conducting transactions to buy and sell ETFs?

    This may happen if your purchase or sale order is very large relative to the volumes traded during the day. This can, however, be significantly minimized if the investor is aware of the secondary market’s liquidity and the advantages of trading in theStock Exchange or in the primary market through an Authorized Participant. For more details on this subject, talk to your agent or read the prior sections related to performance and liquidity aspects.