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I wonder what happens if too many investors want to purchase a given ETF. On one side, the ETF share price is approximately the sum of the ETF holdings divided by the number of ETF shares, since deviations are corrected by ETF Arbitrage (mirror). On the other side, unless more shares are issued, the price should raise. Does this mean the ETF managers issue more shares if too many investors want to purchase a given ETF?

Franck Dernoncourt
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Yes, either the fund management decides so, or someone else with a big wallet will ask them to 'create' new instances.

You can see the daily impact of offer and demand in the ETF's descriptions - typically the list a NAV (Net Asset Value) price and a market price. Higher demand makes the market price higher than the NAV; lower demand makes it lower.

For example VTI (https://investor.vanguard.com/etf/profile/VTI)

Market price as of 02/17/2021 $206.69
NAV as of 02/17/2021 $206.72

Aganju
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