TrueNAV: Your New NAV Calculation Tool

About TrueNAV

Some of you may have noticed the new version release of StockPointer includes a powerful feature called TrueNAV. Its purpose is to calculate an intra-day Net Asset Value for the INOC ETF. Therefore, it tells you how much you should pay as the underlying stocks fluctuate. We saw a couple investment advisors overpay at the open so we thought it would be a good idea to provide this tool. To gain access to TrueNAV, please go on the main page of the StockPointer Platform and click the TrueNav button on the INOC snapshot box highlighted in yellow as shown in the picture below:

On the upper left of your screen, you will see INOC’s last price traded on the TSX and the current real-time bid/ask.  On the example below, the last trade is at 10.45, the bid/ask is at 10.44/10.46 and the NAV is calculated at 10.44. If you buy at 10.46, you are paying one cent premium over the theoretical NAV’s ask so you should wait for a better ask before buying. If you want to sell units of INOC, the bid is competitive at 10.44 because exact NAV is right at 10.44 and theoretical NAV’s bid is at 10.43. In other words, if you want to sell, now would be the right time and you may proceed accordingly.

On the upper right of your screen, you will see INOC’s intraday NAV. The black band shows the exact NAV price along with a theoretical trading band above and below NAV. We provide NAV calculations as early as 9am just before the opening bell. This can give you an idea where the ETF is going to open as market makers are starting to show bid/ask spreads on the underlying securities. However, keep in mind sometimes this information can be distorted by fictive bids/asks from market makers. It is not the case in the example below but if does occur, then wait for the opening bell for an accurate quotation.

On the bottom of your screen, you will have the top three and bottom three movers in daily change percentage and a heat map displaying the holdings for INOC. For now, we only provide TrueNAV for INOC but eventually, we plan to extend this service to other ETFs. If you have any question, comment or suggestion on how we could improve the TrueNAV tool, please contact us by email or call us.

INOC Liquidity Update

INOC had a large trade of $5.7 million on Friday 22nd, 2018, making it the largest transaction on the ETF since inception. The order was made on TriAct Exchange Canada, a specialized market offering execution services for registered Canadian investment dealers. Around 13:01 on that day, TrueNAV was showing an exact NAV of 10.43 while the bid/ask was quoted at 10.43/10.44. The trade occurred 1 cent above fair value but for an order of that size, it’s a reasonable premium.

This trade is a testament to INOC’s high liquidity just like we wrote it in our article Debunking Your Fears Surrounding INOC. The bulk of the $6.0 million order was done in a single ticket. For those waiting on the sidelines to see the impact of a large trade on INOC, now you have it. If you want to execute such a large trade, we recommend dealing with a specialized firm that can arrange the block trade during the day or at the end of day near 4pm at NAV price.