“The lag can be almost one full day,” Dave Nadig, head of ETF analytics for research firm IndexUniverse, said in the article.
The INAV may not be so important for the average buy-and-hold investor.
“A small premium [or discount]for a long-term investor is hardly going to matter relative to overall portfolio movement,” Chris Greene, a financial adviser and owner of the ETF Replay, said in the article.
However, for the active trader, a fast-moving market environment could help some avoid inefficient trades.
In volatile markets, “the [ETF] price on the screen isn’t the price you’re going to get anyway,” Greene added. “Avoid trading these markets.”
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.