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The word NAV stands for Net Asset Value and is one of the main metrics used to analyze a fund profile.

What Exactly is the NAV?

This number is obtained by dividing the fund’s assets by the amount of outstanding shares. It thus represents the official value of a share of the fund, considering the assets that it holds in that moment. Its value tends to change as the assets’ value varies. The NAV can be calculated on a daily basis or even on smaller time intervals: in this case we talk about the intraday net asset value (iNAV). It is however the NAV that holds the function of the fund’s official accounting value.

NAV and ETF Share Price

Although the NAV and the ETF share price are usually very close, they can differ from time to time. Based on demand’s fluctuations, the ETF share price might differ from the official value of the fund’s shares. If demand is very high, the ETF shares might in fact be exchanged at a price higher than the NAV or at a premium. If the contrary occurs, they are said to be trading at a discount. Buying at a premium can be viewed as paying more than their official value.

iNAV

The NAV is the fund’s official end-of-day value, showing what all its holdings are worth after markets close.

The iNAV is a real-time estimate that updates every few seconds, showing the current value based on live market prices.

The market price is what investors actually pay or receive when buying or selling the ETF during the day. It can move slightly above or below iNAV depending on demand and trading activity.

If the iNAV is below the market price, it means the ETF is trading at a premium: investors are paying more than the estimated fair value of the fund’s holdings. This could also reflect strong demand or limited supply of the fund’s shares rather than a true mispricing.

If the iNAV is above the market price, it means the ETF is trading at a discount: investors are paying less than what the underlying assets are worth.

What it means for investors:

A small difference is normal and can occur.
A large premium means you might be overpaying for the ETF compared to its real value.
A large discount could mean you’re getting the ETF cheaper, but it might also signal that the market for its holdings isn’t very liquid or is temporarily out of sync.

Term	What it is	When it's calculated	What it tells you
NAV	Official value	Once daily	The fund’s actual worth at day’s end
iNAV	Real-time estimate	Every few seconds	Intraday snapshot of value
Market Price	What investors actually pay	All day	Supply-and-demand price