Answer: The closing times of some of its underlying securities

## Explanation The **closing times of some of its underlying securities** best explains the observed differences between the ETF market price and its NAV. ### Key Points: - **Foreign securities with earlier closing times**: When underlying securities close earlier than the ETF, their closing prices become stale - **Stale pricing**: The NAV calculation uses closing prices that may not reflect current market conditions when the ETF is still trading - **Market price vs NAV**: The ETF market price reflects real-time investor sentiment and current market conditions, while the NAV uses potentially outdated closing prices ### Why this creates discrepancies: - If foreign markets close hours before the ETF, significant market-moving events can occur in the interim - The ETF's market price will incorporate these new developments, while the NAV calculation cannot - This timing mismatch creates meaningful differences between the ETF's trading price and its reported NAV ### Portfolio construction approach (sampling) may contribute, but the timing issue is the primary driver in this scenario.

Author: LeetQuiz Editorial Team