A fund of Japanese stocks trades in New York while Tokyo is shut.
Its net asset value (NAV) uses Tokyo’s closing prices, from hours earlier.
So the ETF price moves on news the NAV has not seen. The gap is often the market pricing that news.
Overlapping hours
European markets close during the New York morning. Asian markets are shut for the whole U.S. day.
While the home market is open, dealers can hedge in the holdings. Once it closes, they hedge with futures or related funds, and quotes can widen.
What the figures show
ETFIQ finds the gap to NAV that each fund stayed within on 95% of its days.
As of Oct 22, 2026, 499 ETFs hold markets that close before New York. Their median range is ±0.62%.
For 2,673 funds struck at the New York close, it is ±0.19%.
Placing a trade
A premium can mean the market expects the holdings to open higher. A discount can mean the reverse.
The fair limit is midpoint + X¢ to buy, midpoint − X¢ to sell.
X is half the fund’s typical spread in cents, rounded up, and never less than 1¢.
The premiums guide explains how authorized participants (APs) hold the price near NAV.