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ETF Premium/Discount Analysis

Your AI calculates if an ETF trades above or below NAV, compares premiums and discounts across ETFs, screens for extremes, and explains sudden ETF moves using Yahoo Finance data. Includes gamma exposure and arbitrage breakdowns.

Try asking: “Compare the premium/discount for HYG, JNK, and LQD today”

himself65 on GitHub

Curated by PromptsEdge from a public repo · MIT license. All credit goes to the author.

What is this skill?

ETF investors often struggle to understand whether a fund is trading at a premium or discount to its net asset value (NAV), why these gaps exist, and what drives sudden price surges or divergences from underlying holdings. With this skill, your AI delivers detailed ETF premium/discount analysis, screens for the largest outliers, and explains structural drivers like blocked arbitrage or dealer gamma exposure. It's especially valuable for leveraged, inverse, international, bond, commodity, and crypto ETFs, where price deviations can be significant and persistent.

What you can do

  • Check if an ETF trades at a premium or discount: "Is IBIT above NAV right now?" returns the exact percentage and context.
  • Compare premiums/discounts across ETFs: "Compare HYG, JNK, and LQD" gives a ranked table with interpretation.
  • Screen for extreme premiums/discounts: "Show me the 5 ETFs with the biggest discounts today" returns a screener list.
  • Explain why a premium or discount exists: "Why is BITO at a premium?" provides a causal breakdown (liquidity, arbitrage, sentiment).
  • Decompose a sudden ETF move: "Why did KWEB jump 10% when its holdings rose 6%?" splits the move into NAV-driven and structural components, including gamma exposure.
  • Estimate premium convergence timeline: For persistent gaps, get a forecast on how quickly the premium may close.

How it works

When you request an ETF premium check, your AI fetches the latest market price and NAV from Yahoo Finance using yfinance. It computes the premium or discount as a percentage, compares it to historical and category norms, and filters out noise from bid-ask spreads. For multi-ETF comparisons or screeners, it processes a batch of tickers and ranks them by deviation. If you ask for a deep dive or decomposition, it analyzes options data for dealer gamma exposure, checks for signs of blocked creation/redemption, and quantifies how much of a surge is NAV-driven versus structural. Explanations are tailored, with references to liquidity, arbitrage, and sentiment factors.

Good to know

  • Requires Python and yfinance (auto-installed if missing).
  • Works only on CLI agents (Claude Code, Codex, etc.), not on Claude.ai web.
  • No API keys or manual setup needed.
  • Reference files provide detailed formulas and gamma decomposition frameworks.

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