Why are high premiums Then the situation suddenly chang at the end of the trading day, and many crossborder ETFs with obvious gains collectively plung in the end of the trading day, turning from a big rise to a big fall at the close.
In fact, as early as January 2024, crossborder marshall islands email list 100000 contact leads ETFs experienc a rare surge. At that time, the US 50 ETF suddenly rose to the daily limit from 1.05 for several consecutive days. In just one week, it soar to 1.695 yuan, an increase of more than 60%.
The premium also surg to more than 50%
Since the beginning of 2025, crossborder ETFs have made a comeback, and the premium rate has continu to rise. Currently, there are 19 ETFs on the market with a premium rate of more than 5%, all of which are crossborder ETFs.
ETFs have two prices. One is the net value at the yelp’s strategy is a “pay for rating” strategy. time of subscription and remption, which is basically similar to the rise and fall of the index. The other is the price of buying and selling in the secondary market, which is affect by the independent bids and transactions of investors in the entire market. Generally, it fluctuates around the net value.
When the price is higher than the net value
It is call a premium, and when the price is lower than the net value, it is call a discount.
The state of high premium often reveals the signal of overheat market trading. Once the sentiment subsides or the fund opens for subscription, arbitrageurs calling list will rush in and the fund price may immiately return to near the net value. The premium may shrink or even disappear. Investors who purchase at high prices may face capital losses caus by the decline in premium in the short term and pay the price for the high market sentiment Why are high premiums.