The are ETFS that are traded on the EU stock exchanges that follow the SP500.
My question is if for example at 3pm New York time (when European markets are closed) the Sp500 crashes 15% how this will be reflected to the European Etfs?
I would expect that when the markets open people will sell but until enough people sell for a few hours the ETF will not reflect the index it supposedly follows.
Is this assumption correct? Or will the Etf be adjusted before the opening?
Taking this thinking one step further. One could imagine a scenario that the stocks in the index crash or go up but the Etf does not follow. Is it possible? And if yes then why do we say they follow the index?