ETF iNAV Calculation Errors and Their Impact
Recently, several ETFs, including Samsung Asset Management's KODEX Short-term Bond ETF, experienced errors in their real-time estimated net asset value (iNAV) calculations, causing confusion among investors. The error, attributed to a data vendor's mistake, caused a divergence rate of -5.39% for the KODEX Short-term Bond ETF, leading to a 50-minute system disruption. Although the issue was quickly resolved, it has led to a decline in the trust of the ETF market.
On 31st, Samsung Asset Management announced a prompt response to the iNAV error, but similar errors in various domestic equity ETFs have repeatedly caused investor anxiety. The inaccurate iNAV led some investors to trade at overpriced values, resulting in financial loss. Regulatory authorities are closely monitoring the situation, and fund managers are criticized for not adequately addressing their obligations to disclose iNAV errors.
This situation has sparked controversy as operating firms pre-notified information errors to LPs, allowing securities firms to minimize losses while ordinary investors were exposed to risks due to wrong iNAV data. This reveals the necessity for system maintenance and operational improvements to prevent such discrepancies and protect fair market conditions for all investors.
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Batch Calculation Errors in ETFs… Management Company Informed Only Brokerages First - Digital TimesLast week, the real-time net asset value (iNAV) of ETFs listed in Korea experienced a series of errors...
Another ETF iNAV Error… Samsung KODEX Short-term Bonds Soar Over 5.85% Temporarily (Summary) - Yonhap InfomaxJust a day after an incident involving errors in calculating the indicative Net Asset Value (iNAV) for over 160 Exchange Traded Funds (ETFs), another miscalculation led to a temporary price surge. According to a disclosure from the Korea Exchange on the 31st, Samsung Asset Management announced an error in the real-time iNAV calculation for 'KODEX Short-term Bonds', one of its flagship products. Samsung Asset Management stated, 'Due to an error from the data vendor, there was an error in calculating the ETF's iNAV starting from 10:41:10.'
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Another iNAV Error in Just One Trading Day... Samsung Short-Term Bond ETF, Discount Rate Once Below -5% - Seoul Economic DailySecurities > Domestic Stock Market News: Just one trading day after an error in calculating the indicative net asset value (iNAV) of 170 exchange-traded funds (ETFs) occurred, another issue arose in the ETF iNAV information calculation process...
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ETF Large Scale NAV Errors Reoccur in One Day... Asset Management Firms' Competence Under Scrutiny - Money TodayJust one trading day after an error in calculating the net asset value (iNAV) of 170 domestic equity ETFs, another iNAV calculation error has occurred. Such errors can lead investors to pay more for ETFs than their actual value. Asset management firms that failed to pre-emptively identify the errors are now under scrutiny for their management competence. According to the Korea Exchange's corporate disclosure channel (KIND) on the 31st...
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Another ETF iNAV Error... Samsung KODEX Short-term Bonds Once Had a Deviation Rate of '-5.39%' - Yonhap InfomaxJust a day after the net asset value (iNAV) calculation error incident of over 160 Exchange Traded Funds (ETFs), another error has occurred in the iNAV information of ETFs. According to the announcement by the Korea Exchange on the 31st, Samsung Asset Management disclosed that an error occurred in the real-time estimated net asset value (iNAV) calculation of one of its flagship products, 'KODEX Short-term Bonds.' Samsung Asset Management stated, 'An error in the data vendor caused the real-time estimated net asset value (iNAV) calculation error for the ETF to occur starting from 10:41:10 AM.' KODEX Short-term Bonds has a total net asset of 700 billion KRW.