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Pacific ETF vs Pacific Stock Markets

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04-16-2008 , 12:13 AM

soko

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Join Date: Nov 2004 Posts: 3,139

Can somebody possibly explain to me how for example the Vanguard Pacific ETF (AMEX:VPL) tracks the stocks in the pacific region when their markets don't open until 8PM EST when the US markets are closed.

My intuition tells me when the US markets open the opening price of VPL will reflect last nights closing prices but I don't quite understand how these ETFs can be so volitile when their underlying stocks aren't being traded.

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04-16-2008 , 12:25 AM

Jimbo

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Join Date: Sep 2002 Posts: 8,940

Without researching it too deeply I'm pretty sure they use ADR's. The same way many people buy an equity that simulates the foreign stock. You might google American Depository receipts.

Jimbo

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04-16-2008 , 12:30 AM

Jimbo

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Join Date: Sep 2002 Posts: 8,940

I looked at their top ten holdings: HMC is Honda TM is Toyota BHP is BHP Billiton Ltd SNE is Sony, those are the ones I know off the top of my head. I do know that Nintendo trades on the pink sheets, I think it is NTDOY.pk,

Jimbo

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04-16-2008 , 12:39 AM

soko

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Join Date: Nov 2004 Posts: 3,139

So basically people are trading these stocks on what basis? Is there new information coming out at the times when the US markets are open? I honestly have no idea.

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04-16-2008 , 12:43 AM

Jimbo

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Join Date: Sep 2002 Posts: 8,940

Quote:

Originally Posted by soko

So basically people are trading these stocks on what basis? Is there new information coming out at the times when the US markets are open? I honestly have no idea.

Here you go Soko:

http://www.investopedia.com/articles...artner=answers

Jimbo

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04-16-2008 , 08:17 AM

DcifrThs

Chip Spewer

Join Date: Aug 2003 Posts: 15,812

Quote:

Originally Posted by Jimbo

Here you go Soko:

http://www.investopedia.com/articles...artner=answers

Jimbo

jesus...usually investopedia is useless...that explanation is both spot on, easily followed, exceptionally reasoned and uses a real world example. i learned some things.

really really good job by investopedia...ty 4 linky

Barron

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