STI ETF vs Nikko AM STI ETF

[quantcall]

my NAV is NAV per unit, of course can't be the whole net asset value....

in your dividend example. So in the end, the NAV per unit of the ETF remains $1, the number of units continue to be 100 units. To simplify, let's assume the constituent price is $1 as well. Where does the $2 dividend come from? from the underlying constituent. The underlying constituent price will drop 2 cents after xd, 98cents. Assuming the ETF can continue to trade at $1, I will buy 100 shares of the constituent from the open market @98 cents and deposit to the ETF fund manager and create 100 units of the ETF and sell the 100 ETF units @$1 in the open market. After that being done enough, the price of the ETF will be 98cents no matter the fund manager pay or don't pay dividend. Though the NAV per unit of the fund actually continue to be $1, no investor will be interested in it any more, as it will always traded(98cents） below the NAV per unit（$1）.

after fund manager uses $2 to buy the share, one unit of etf would have 1+0.02/0.98=1.0204 units of shares. now 100 shares can NOT be exchanged with 100 units of etf, so you need to buy 1.0204 shares in exchange for 1 etf unit. both cost u $1

Sorry. I was wrong. I simplify the process of creation and redemption. The creation basket can include even cash to prevent arbitrage before the dividend was paid out.

no problem, this is the place to exchange ideas