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But why would that happen? Let's say an ETF normally trades at 99% of it's NAV. Suddenly it "crashes" and only trades at 97.2% after some bad news. Bob in accou

But why would that happen? Let's say an ETF normally trades at 99% of it's NAV. Suddenly it "crashes" and only trades at 97.2% after some bad news. Bob in accounting embezzled millions. It's gone, Bob spent it all at the strip club. Wouldn't some investor decide to just net the approximately ~1.8% by increasing demand and buying it up? After all, Bob embezzled millions. Not the billions that larger ETFs control. Unless you're proposing some weird industry wide boycott of Vanguard or something. In that case the only thing stock traders are going to accomplish is destruction of every publicly traded asset they hold as market confidence in retail traders slowly slips downwards.

justin66 8mo ago
> Wouldn't some investor decide to just net the approximately ~1.8% by increasing demand and buying it up? When it comes to individual investors, sure, in a situation where everything is going crazy in the markets some will buy and some will be happy to sell, provided the exchange doesn't halt trading temporarily in response to an extreme drop in share prices. The problem comes when the large market makers who are meant to really be on the ball and buy large blocks of shares quickly are suddenly worried about their own survival, or at least that's the way I remember a few of the chaotic days of 2008. I knew a few people who made money buying bond ETFs at a discount to NAV.