Q: Some time ago, you published a very good statement about when HSAV is undervalued and overvalued based on NAV. Where can I find it or can you give me another answer here. Thanks
5i Research Answer:
It is possible that it was this response.
Essentially, the premium to NAV fluctuates based on supply/demand for the ETF, and demand will run high when rates/yields are actively rising and investors are seeing a favourable risk/reward setup in stable, high-yielding products vs. equities. This pulls the premium to NAV up. Conversely, when rates are low, and expected to decline, the yield on the product is expected to decline and thus investors seek capital safety elsewhere, pulling the premium down.