iShares S&P/TSX 60 Index ETF T.XIU

Alternate Symbol(s): IUTSF

The investment objective of the Fund is to provide long-term capital growth by replicating, to the extent possible, the performance of the S&P/TSX 60 Index , net of expenses. Under normal market conditions, the Fund will primarily invest in Canadian equity securities. The Index is a strategy index focused on dividend income. The Index is comprised of 60 of the largest by market capitalization and most liquid constituents of the S&P/TSX Composite Index. Sectors are intended to mirror sector weights of the S&P/TSX Composite Index To achieve its investment objective the Fund uses an indexing strategy. Under this strategy, the Fund seeks to replicate the performance of the Index, net of expenses, by employing, directly or indirectly, through investment in one or more iShares ETFs and/or through the use of derivatives, a replicating strategy or sampling strategy.

TSX:XIU - Post by User

iShares S&P/TSX 60 Index ETF

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Post by mkirkon Sep 02, 2005 7:35pm

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Post# 9503177

Arbitrage opportunity

XIU always trades near NAV as it's essentially a portfolio of stocks. Similarly, TTF is an index fund (with low MER btw) of the entire composite index. However, unlike its XIU counterpart arbitrage opportunities arise. Take today for instance. The NAV closed at $36.18 (https://www.tdassetmanagement.com/content/products/Etf/Funds/p_OurFunds.asp ) yet someone sold into a bid at $34.60! and the current close is $35.35 and bid-ask spread is $34.50 by $35.35. What an arbitrage opportunity! Note the % difference between $36.18 and 35.35 or 34.50 and then apply that to the current TSX index. That's how much the Index would have to open down on Tuesday to reflect this deal. Anyway, it will be temporary and no doubt is because of the impending long weekend. Just an interesting observation no?

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