Has this ever been observed to be the case? We have had moments of extreme or at least high volatility in the recent past and I don't recall any news articles about how VTI diverged from VTSAX. That being said, even if such a thing did happen, that would only affect people who trade the ETF during those moments of volatility, right? For anyone else, the only risk is that people would be so scared off of the ETF that there would be insufficient liquidity to restore the price to the right point. Even then, an authorized participant will eventually buy up the under-priced shares and redeem them.
Has this ever been observed to be the case? We have had moments of extreme or at least high volatility in the recent past and I don't recall any news articles about how VTI diverged from VTSAX. That being said, even if such a thing did happen, that would only affect people who trade the ETF during those moments of volatility, right? For anyone else, the only risk is that people would be so scared off of the ETF that there would be insufficient liquidity to restore the price to the right point. Even then, an authorized participant will eventually buy up the under-priced shares and redeem them.