Can ETF be inefficient?
For ETF, it seems the price is determined by ask/bid and trading price.
Can it be inefficient, that the trading price deviates from the underlying tracked index?
For example, intentionally buy and sell the ETF, in a large volume, at a pretty low price.
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An ETF can be inefficient, however, it is structured to be efficient. Every ETF has Authorized Participants (AP) who basically profit off of the difference until the difference is 0. While a large order will move the ETF slightly off of the NAV, the APs should move to correct it as it is profitable for them to do.
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