WHAT TO TAKE AWAY FROM A STRANGE MONDAY IN ETF LAND
Thursday 8/27/2015 17:00:22 EST - Standard & Poor's

A number of equity ETFs declined 20% or more Monday morning only to have recovered most of those losses before the close. Since ETFs are a basket of securities, the sharp selloff in many stocks was likely part of the reason. However the ETF structure also contributed to the weakness.

Unlike mutual fund sales or purchases that are executed at the end of the market close, ETFs trade intraday. As such, the prices investors pay can be different than the net asset value (NAV) of the underly...