Net Asset Value (NAV) Definition

Net Asset Value (NAV) Definition

Learn the definition of net asset value (NAV) and other ETF terminology from the glossary.

Reviewed by: Staff
Edited by: Staff

Learn more about Net Asset Value (NAV)

Net Asset Value, or NAV, is a fundamental metric in the realm of ETFs, representing the per-share market value of the fund. Calculated by subtracting liabilities from assets, NAV serves as the basis for determining the ETF's share price. Investors buying or selling ETF shares directly from the fund do so at NAV. While the market price of an ETF may fluctuate based on supply and demand factors, NAV provides a standardized valuation that reflects the true value of the underlying assets. Understanding NAV is crucial for investors looking to assess the fair value of an ETF.

ETF Glossary is’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.