Re: This should not be happening
I guess I am missing the issue. Is there a claim or mechanism in place that is supposed to link ETFs to their underlying no matter the dynamic movements ?
My expectation is that there will always be a lag as either market participants or the sponsors arbitrage away the errors. Under panic conditions it should be fully expected that a huge trade imbalance can occur as it can for any stock. And it seems likely that where a underlying is a smaller cap or more thinly traded than the ETF, it may be more likely to suffer such occurrences - and vise versa.