Just one trading day after an error occurred in the process of calculating the net worth (iNAV) of domestic equity exchange-traded funds (ETFs), another issue arose.
On the 31st, Samsung Asset Management announced that an error occurred in the real-time calculation of the iNAV for the KODEX short-term bond ETF. The error occurred from 10:41 a.m. that day and was resolved at 10:48 a.m., according to Samsung Asset Management. The company noted, “We resolved the error by presenting the iNAV we calculated ourselves in 7 minutes.” At one point in the morning, the ETF's deviation rate expanded to -5.39%.
According to Samsung Asset Management, the error this time occurred due to a data vendor's error, leading to the calculation error of the real-time estimated net worth (iNAV) of the ETF. A representative from Samsung Asset Management stated, “The process of calculating the iNAV for domestic bond-type ETFs involves the index operator collecting real-time over-the-counter transaction information from the won bond market and sending the bond prices to Korea Securities Computing Corporation (KOSCOM), which calculates and sends the iNAV to the market. In this case, an error occurred in the bond data,” he explained.
The error occurring in the calculation of the ETF iNAV is just one trading day apart. Previously, on the 28th, an error occurred in the process of calculating the iNAV, leading to a significant discrepancy between the actual value and market prices of 163 ETF items. If trading occurred while a significant deviation existed due to the error, investors may have purchased at a price higher than the ETF's actual value. This error arose while calculating dividends by Korea Fund Partners, the fund administrator responsible for calculating the fund's net asset value.