Q: Can you please help me understand HISA ETFs - for instance, I see HSAV dipped down to $108.75 on Oct 30, then bounced back up. In an ETF where there are no distributions, what would explain the dips? In theory, shouldn’t it continuously increase in price?
5i Research Answer:
HSAV has suspended new subscriptions, so it can and does trade at a small premium to asset value. Thus, the premium can vary with supply and demand of the ETF, as with suspended subscriptions it can act more like a closed-end fund, resulting in some price variability.