Just curious about this as it has crossed my mind a number of times. Does the Buy:Sell ratio of an ETF directly affect its price or is the price controlled by the ETF managers and tied directly to the NAV?
For arguments sake and illustrative purposes on what I'm asking, let's say we have a very small ETF that trades exclusively in Megacap stocks, and the moves the ETF makes do not impact the stocks it buys sells at all or more than a couple pennies. On one particular day, for whatever reason, nobody is buying the ETF and everyone is placing market sell orders. At the same time, all the stocks the ETF invests in are up, way way up. Does the ETF move up or down that day?
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