In our view, unit prices are somewhat meaningless in the information they provide. A unit price or share price is meaningful when you can only buy whole units or shares – which is the case with many ETFs. As we invest your order down to the cent, there’s never any wastage or un-invested residue.
Unit prices are of value in assessing relative worth, i.e. a rise from $3.00 to $3.24, enables you to calculate that you have made an 8% gain over that period of time. However, we would rather provide you with meaningful performance reporting so you can more adequately review that 8% gain amongst your overall investment portfolio.
The unit price is otherwise just a number - a way to proportionally and equally divide the fund amongst its investors and allow entry and exit of investors.
Please note most funds do not commence at a round base value; for example NZ 20 Fund unit price started at $3.537.
If you have any questions please get in touch.