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Excerpt from Bloomberg View -- "What this means is that, so long as liquidity in the underlying assets backing the ETF is sufficient, the APs will execute an arbitrage that keeps the market price of the ETF close to the net-asset value of the underlying portfolio. But, during periods of market stress, should it become difficult to trade underlying assets, investors wanting to sell their shares may have to settle for prices below the NAV. That is, those who want to sell may have to do it at a discount. Put another way, when markets are liquid, ETFs operate like open-end mutual funds; but should markets become illiquid, ETFs then operate like closed-end funds. As a consequence, ETFs face no run risk."

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