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VFV vs VSP decline on Nov 2 please explain

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  • Nov 3rd, 2018 12:49 am
Sr. Member
Oct 21, 2016
946 posts
718 upvotes

VFV vs VSP decline on Nov 2 please explain

Today VFV declined 0.76 percent while VSP declined 0.67 percent. However the Canadian dollar declined 12 basis points today. My question is why did the unhedged version under perform the hedged version and the s & p 500 considering the Canadian dollar fell. I am curious for an explanation as this does not fit my understanding.
7 replies
Deal Addict
User avatar
Aug 4, 2014
3963 posts
4723 upvotes
Toronto, ON
Ha, and iShares XUS and XSP were the opposite, as expected.. what’s interesting, on Vanguard website VFV is -0.59%:
As of close 2 November 2018

$63.3150 -$0.3750 -0.59%

NAV price

This data is temporarily unavailable.
https://www.vanguardcanada.ca/individua ... /?overview

and VSP is $47.4900 -$0.3200 -0.67%.. Let’s check NAV prices when they become available - those should be aligned..
Sr. Member
Oct 21, 2016
946 posts
718 upvotes
Thanks so there is a discrpenacy between the NAV and the price listed on my discount broker at close 4 pm ?
Deal Addict
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Aug 4, 2014
3963 posts
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Toronto, ON
Yep I checked globeandmail, Questrade app and Stockwatch, all show slightly different numbers. Stockwatch lists last trade for VFV as $63.30, but somehow Change is -0.46%: http://www.stockwatch.com/Quote/Detail. ... V&region=C!

NAV is how much underlying equities cost. But the real price of ETF can vary a bit depending on demand-supply (the last order was for 400 shares thou, not too huge..)

I won’t get into the lending of stock shares to short sellers that ETFs do as I’m not sure if it also would affect the price discrepancies (and there’s no way to check those numbers..)
Deal Addict
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Aug 4, 2014
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Toronto, ON
Upd. NAV prices became available:

VFV: $63.3710 -$0.3374 -0.53%
VSP: $47.5381 -$0.2993 -0.63%

S&P 500 USD: 2,723.06 -17.31 -0.63%
CADUSD: 0.76265 0.00137 -0.18%

So looks like different websites/apps closing prices inconsistencies (yes, I manage software development for a living.. :)) + the usual:

“There may be differences between the market closing price for the ETF and the NAV. Any deviations should be relatively minor, however. This is due to the redemption mechanism used by ETFs. Redemption mechanisms keep an ETF's market value and NAV value reasonably close.”

Read more: What is the difference between an ETF's net asset value (NAV) and its market price?

Anybody has a better idea? :)
Sr. Member
Oct 21, 2016
946 posts
718 upvotes
Interesting thanks for the info . The market close price for vfv was 63.28 and NAV was 63.37 so a difference of 9 cents at close or 0.20 percent almost. Seems large ?
Deal Addict
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Aug 4, 2014
3963 posts
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Toronto, ON
Frankly, was never checking before, spot-checked a few:

VTI: $139.45 $139.54
VEE: $30.995 $30.992 (very close)
XUS: $44.72 $44.64
XAW: $24.85 $24.82
XEF: $28.88 $28.90 (market larger than NAV)

For VFV, as per Vanguard website, the difference is 5.6 cents. Unless you sold today - could be better next time :)
Deal Addict
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May 7, 2017
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I suspect the difference is coming off of the wider spreads on vanguard ETFs. (Spread would be about the same as 9 cents at times)

I hold VSP and it keeps me pissed all the time. Everyone recommends it but it never tracks as accurately as XSP. Low MER does not help when wider spreads take away all gains. I plan to switch to XSP end of the year.

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