How does the performance of NASDAQ-100 Index Tracking Stock compare with the performance of the NASDAQ-100 Index?
NASDAQ-100 Index Tracking Stock is designed to provide investment results that generally correspond to the price and yield performance of the underlying NASDAQ-100 Index. One market mechanism that helps to keep NASDAQ-100 Index Tracking Stock trading at a price close to the value of its underlying portfolio is arbitrage. Because NASDAQ-100 Index Tracking Stock is both redeemable into the stocks of the NASDAQ-100 Index and can be created from the stocks of the NASDAQ-100 Index on any day, arbitrage traders may move to profit from any price discrepancies between the NASDAQ-100 Index and NASDAQ-100 Index Tracking Stock which in turn helps to close the price gap between the two. (NASDAQ-100 Index Tracking Stock creations and redemptions are restricted to large transactions in multiples of 50,000 shares of NASDAQ-100 Index Tracking Stock, usually carried out by institutional investors.) Of course, because of the forces of supply and demand and other market factors, there may be times when N
