General

What is Net Asset Value (NAV)?

NAV = (Total Assets – Liabilities) / Number of outstanding shares

NAV is the worth of a single share of the fund. This intrinsic value is calculated at the end of the day. The assets include the market value of underlying assets held by the fund. The liabilities cover all the expenses, fees and debts.

NAV, while being the intrinsic value does not equal to the price of the ETF share. As, ETFs are traded on the exchange, it is possible that the ETF may be trading at a premium or discount depending on the supply-demand dynamics.