SIE practice questionhardETFs
Which factor most limits significant price deviations between an ETF's market price and its net asset value?
- AListing on the NYSE or NASDAQ
- BDaily calculation of the ETF's NAV
- CSEC regulation of mutual funds
- DThe ETF creation/redemption process involving authorized participants✓ Correct answer
Explanation
Why D — The ETF creation/redemption process involving authorized participants
A is correct; the creation/redemption process helps keep ETF prices close to NAV. B, C, and D do not directly address premium/discount management.
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