New York Fed Investigating ETFs [Report]

The Federal Reserve Bank of New York is investigating if the price of exchange traded funds (ETFs) is significantly differentiating from the underlying holdings in those funds. The investigation comes as prices between the underlying assets and the ETFs they purport to represent swing widely.

The iShares iBoxx high-yield bond ETF recently traded at a discount of almost 1 percent to net asset value held in the ETF, and then climbed to a premium of 1.3 percent last week, according to a report in the Financial Times by Tracy Alloway.

Russian ETFs trading at a discount

The report observed earlier this month the Market Vectors Russia ETF, trading at a a 5.8 percent discount to its underlying...