Commodity market volatility has failed to fully subside despite U.S. President Donald Trump's declaration of a "two-week ceasefire," leaving related exchange-traded funds (ETFs) with significant pricing gaps, data showed. Oil and energy ETFs in particular still bear the aftershocks of underlying asset surges triggered by the Strait of Hormuz blockade, requiring investor caution.
According to Koscom ETF Check data on Tuesday, the top undervalued ETFs by discount rate included RISE U.S. S&P Oil Production Companies (Synthetic H) at -8.96%, KODEX U.S. S&P 500 Energy (Synthetic) at -5.90%, and KIWOOM U.S. Oil Energy Companies at -5.38%. RISE U.S. Natural Gas Value Chain also showed undervaluation at -4.43%, confirming widespread underpricing across major energy ETFs. The previous day, pricing gaps for oil-related ETF products had widened to double digits.
A negative discount rate indicates that an ETF's price has failed to keep pace with its net asset value (NAV), leaving it relatively undervalued. This typically occurs when ETF price adjustments lag during rapid surges in underlying assets. Oil prices temporarily plunged on Trump's two-week ceasefire remarks, but the move was insufficient to fully reverse the sharp rally driven by Iran's blockade of the Strait of Hormuz.
