Funds & wrappers
Net asset value
Also called NAV
The value of everything a fund owns, minus what it owes, divided by the number of units.
How it works
NAV is the fund’s per-unit worth. Open-ended funds deal at it directly; exchange-traded funds and investment trusts trade around it in the market.
It is normally struck once a day using closing prices, which is why an ETF’s intraday price is compared to an estimated NAV rather than the official one.
Formula
NAV per unit = (total assets − total liabilities) ÷ units in issueRelated terms
- Mutual fundA fund that creates and cancels units on demand, priced once a day at net asset value.
- ETFA fund whose shares trade on an exchange throughout the day like an ordinary share.
- Premium and discountThe gap between a listed fund’s share price and the value of the assets it holds.
- Mark to marketValuing a holding at the price it could be sold for today, rather than what was paid for it.
Mentioned in
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- Synthetic ETF
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All 25 Funds & wrappers terms · The full glossary, 433 terms
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.