Glossary of Terms
Bid/Ask Midpoint (Market Price)
The midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund's NAV is calculated (usually 4:00 pm ET).
The amount an ETF is trading below the reported NAV expressed as a percentage of NAV.
A financial ratio that shows how much an ETF pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock.
IOPV (Indicative Optimized Portfolio Value)
A calculation disseminated by the stock exchange that approximates the fund's NAV every 15 seconds throughout the day.
Net Asset Value (NAV)
NAV is the price per share at which each fund issues and redeems shares. It is calculated by the fund accountants in accordance with the standard formula for valuing mutual fund shares at the close of regular trading (normally 4:00 p.m. ET) every day the New York Stock Exchange is open.
The amount an ETF is trading above the reported NAV expressed as a percentage of the NAV.
Price to Earning Ratio
A valuation ratio of an ETF's current share price compared to its per-share earnings.
A standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund's filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund's expenses. This is also referred to as the "standardized yield."
Stock currently held by investors, including restricted shares owned by the company's officers and insiders, as well as those held by the public. Shares that have been repurchased by the company are not considered outstanding stock.
The number of shares or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a stock purchases 100 shares from a seller, then the volume for that period increases by 100 shares based on that transaction.
The date on or after which a security is traded without a previously declared dividend or distribution. After the ex-date, a stock is said to trade ex-dividend.
Long Term Capital Gains
A gain or loss from a qualifying investment owned for longer than 12 months and then sold. The amount of an asset sale that counts toward a capital gain or loss is the difference between the sale value and the purchase value. Long-term capital gains are assigned a lower tax rate than short-term capital gains in the United States.
The date on which a declared stock dividend is scheduled to be paid.
The date established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution.
Short Term Capital Gains
A capital gain realized by the sale or exchange of a capital asset that has been held for exactly one year or less. Short-term gains are taxed at the taxpayer's top marginal tax rate.