Many ETFs seem to be trading at a big premium or discount to their benchmark.
inav 15 minutes based for etf
Typically in normal market conditions, market makers jump in to capture this difference and control deviations to INAV.
But in market like yesterday, (election counting day) with extreme volatility, market makers are unable to cover up (or unwilling to) and hence the gap. Market making also involves risks, and in extreme volatility, market makers go slow, to avoid unnecessary high risks.
6th june 2024
Given that ETFs trade real-time, you need a reference point to see if the market price you see on your trading platform is a fair one and the indicative or intraday NAV (iNAV) serves as that reference. AMCs usually calculate this every 10-15 seconds and publish it on their websites.
