In a way, yes. It applies to all ETFs.

The thing is while price is dependent on market sentiments, ultimately it won't veer off too far.

Why?

Below is a reply using AI:

An ETF's price is primarily regulated by an "arbitrage mechanism" which ensures its market price closely tracks the net asset value (NAV) of the underlying assets it holds, meaning that large discrepancies between the ETF price and its intrinsic value are quickly corrected by authorized participants (APs) who can create or redeem ETF shares to capitalize on price differences; essentially, if the ETF price deviates too much from its NAV, APs will buy or sell the ETF to bring it back in line with the underlying assets, maintaining price stability.

Key points about ETF price regulation:

Authorized Participants (APs):
These large institutional investors play a crucial role in maintaining price stability by creating new ETF shares when demand is high and redeeming existing shares when demand is low.

Arbitrage Opportunity:
If an ETF's market price deviates significantly from its NAV, APs can profit by buying or selling the ETF to bring it back in line, essentially "arbitraging" the price difference.

How it works:

Price Discrepancy:

If an ETF is trading at a premium (price higher than NAV), APs can buy the underlying assets in the market and then redeem them for ETF shares, effectively creating new shares and increasing supply to drive the price down.

Price Discount:
Conversely, if an ETF is trading at a discount (price lower than NAV), APs can sell the underlying assets and buy back ETF shares, decreasing supply and pushing the price up.