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How can the performance of NASDAQ-100 Index Tracking Stock diverge from the underlying Index?

April 26, 2017diverge index nasdaq-100 PERFORMANCE stock underlying

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How can the performance of NASDAQ-100 Index Tracking Stock diverge from the underlying Index?

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Because the underlying NASDAQ-100 Index is not an investment instrument, it incurs no expenses, which are therefore not reflected in the NASDAQ-100 Index Tracking Stock. The net asset value of NASDAQ-100 Index Tracking Stock reflects Trust expenses and accrued dividends, if any. Also, over time, NASDAQ-100 Trust securities may be rebalanced to reflect changes in the Index resulting in additional transaction costs.