Interactive Data Tackles ETF Uncertainty With Vanguard Deal

Rob Haddad, Interactive Data. The company is combining fair-value techniques with real-time calculations for ETF iNAVs.

The calculation engine is paired with Interactive Data's fair-value technology. The deal highlights particular challenges associated with pricing ETFs in an accurate manner, as many funds' constituents ─ stocks, commodities or bonds ─ may not be actively traded on global markets at the time of day when others on European exchanges are. Factoring in periods of high volatility can increase problems with confidently valuing ETFs, which the combination of the vendor's two offerings aims to mitigate.