ETFs: Pricing

ETFs: Pricing

Intuition Publishing Pty Ltd
Updated Sep 25, 2020

The price of an ETF will typically be close to its net asset value (NAV), but supply and demand imbalances may drive the ETF price temporarily higher and lower than this. Here we look at the role that price transparency and the creation and redemption mechanism play in ensuring that such price imbalances are short-lived.