NAV (Net Asset Value)
Educational only, not financial advice.
NAV (net asset value) is the value of a fund's underlying assets minus its liabilities, divided by the number of shares outstanding. It represents the theoretical fair value of one share of the fund.
Why it matters
- Mutual funds are bought and sold at their NAV, calculated once per day after markets close.
- ETFs trade throughout the day at market prices that can drift slightly above or below NAV, though authorized-participant arbitrage usually keeps the gap small.
- Comparing a fund's market price to its NAV can reveal whether it's trading at a premium or discount.
Simple example
- If a fund holds $100 million in assets, has no liabilities, and has 10 million shares outstanding, its NAV is $10 per share.
- An ETF's market price might briefly trade at $10.02 while its NAV is $10.00 — a small premium that typically self-corrects.
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Reviewed by Greg Parsons. Links checked October 14, 2026. Educational only, not financial advice.