Underlying Index Performance: The primary driver is the performance of the index the ETF tracks. A rise or fall in the index's value directly impacts the ETF's price.

Supply and Demand: Market forces of supply and demand play a role. Higher demand pushes the price up, while increased selling pressure lowers it.

Net Asset Value (NAV): The NAV, representing the total value of the ETF's holdings minus liabilities, provides a theoretical fair value. The ETF price tends to stay near NAV.

Premium or Discount to NAV: The ETF price can trade at a premium (above NAV) or discount (below NAV) depending on market sentiment and demand. Large deviations are usually short-lived.

Expense Ratio: While not directly affecting daily price fluctuations, the ETF's expense ratio (annual management fee) impacts its long-term performance, making it less attractive compared to similar lower-cost ETFs.

Market Sentiment: Overall investor confidence and prevailing market mood can influence buying or selling decisions, indirectly affecting the ETF price.

Trading Volume: High trading volume generally indicates greater liquidity and tighter bid-ask spreads, potentially leading to more efficient price discovery.

Economic Conditions: Broad economic factors such as interest rates, inflation, and GDP growth can impact the underlying index and, consequently, the ETF's price.

Currency Fluctuations: For ETFs holding assets denominated in other currencies, exchange rate movements can impact the ETF's returns in the local currency.