Difference of value of an ETF and its underlying assets
An ETF price might be slightly different than its underlying assets' one because the latter trades in the primary market and the former in the secondary one (font: ETFs bubble see minute 5:30).
Taking this into account, in an hypothetical ETFs / index funds collapse, can it happen that this difference goes off to very high levels?
If so, is technically possible that, after a crash, the ETF's underlying assets' come back to 'normal' values while the ETF itself is stuck at a very low price?
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No, that is pretty much impossible. If it could happen, market participants would purchase the ETF while shorting its constituents. They would make money on the difference, and the very act of their doing this trade would tend to drive up the price of the ETF, and drive down the price of the constituents, closing the gap.
These sorts of scenarios, usually a discount in the value of the fund to that of the underlying assets, tend to persist in smaller and more specifically focused closed-end funds.
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