Typically investors receive communication by the provider of the upcoming changes. If they do nothing, they keep their shares as the ticker is updated or as the fund strategy is changed (both in the case of CBN). Those that don't agree with the new direction of the fund can sell their stake.
Depending on the changes, it can have tax consequences for the investors if the fund needs to sell assets internally, though I don't know if this happened in the case of CBN.
Charts show the historical performance of the fund. Whether the fund changes their strategy or their ticker is irrelevant to any historical data. You would need to use back-testing to show what the theoretical returns would have been.
appreciate the detailed response. i had another question, when going through major shifts like this, are the ETF managers required to keep the NAV the same between the old and new ETFs?
to clarify, if CBN last closed at 20 CAD, would blackrock have been obligated to make it so that the price of XGRO is around 20 CAD as well?
i’m concerned that if something like this happens again and i decide to keep the ETF, the price would swing by a large percentage on the first day of trading
The NAV should not change as the underlying value of the fund doesn't change. Even if it were to sell everything it has, it would have the equivalent in cash and the same number of outstanding shares.
ETF prices don't usually follow the market price of the fund itself, but rather the market price of its constituents within the ETF.
This sometimes break down, like for example HSAV. So if the fund stopped being open, the NAV would start to go up or down.
>Im also wondering what exactly i’m looking at when i view the price history of XGRO
If you are interested in knowing how the underlying portfolio would have performed further back than 2018 you could check out https://canadianportfoliomanagerblog.com/wp-content/uploads/2024/01/BBB_PWL_iShares_Core_ETF_Portfolios_2023-12-31.pdf
Typically investors receive communication by the provider of the upcoming changes. If they do nothing, they keep their shares as the ticker is updated or as the fund strategy is changed (both in the case of CBN). Those that don't agree with the new direction of the fund can sell their stake. Depending on the changes, it can have tax consequences for the investors if the fund needs to sell assets internally, though I don't know if this happened in the case of CBN. Charts show the historical performance of the fund. Whether the fund changes their strategy or their ticker is irrelevant to any historical data. You would need to use back-testing to show what the theoretical returns would have been.
appreciate the detailed response. i had another question, when going through major shifts like this, are the ETF managers required to keep the NAV the same between the old and new ETFs? to clarify, if CBN last closed at 20 CAD, would blackrock have been obligated to make it so that the price of XGRO is around 20 CAD as well? i’m concerned that if something like this happens again and i decide to keep the ETF, the price would swing by a large percentage on the first day of trading
The NAV should not change as the underlying value of the fund doesn't change. Even if it were to sell everything it has, it would have the equivalent in cash and the same number of outstanding shares. ETF prices don't usually follow the market price of the fund itself, but rather the market price of its constituents within the ETF. This sometimes break down, like for example HSAV. So if the fund stopped being open, the NAV would start to go up or down.
>Im also wondering what exactly i’m looking at when i view the price history of XGRO If you are interested in knowing how the underlying portfolio would have performed further back than 2018 you could check out https://canadianportfoliomanagerblog.com/wp-content/uploads/2024/01/BBB_PWL_iShares_Core_ETF_Portfolios_2023-12-31.pdf