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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:
| 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 |
What Is CAGR?
CAGR, or Compound Annual Growth Rate, is a way to express the average annual rate at which an investment would have grown from a beginning value to an ending value over a period of time, assuming gains were reinvested (compounded). In the context of an ETF, CAGR is often used to summarise how the fund’s price or NAV grew over a multi year period as if it had increased at a steady rate each year. Because it smooths out year to year ups and downs, CAGR is useful for comparing long term growth across funds or versus a benchmark; but it's not the actual return earned in each individual year, and it does not reflect risk or volatility.