Net Asset Value (NAV) Definition
Learn the definition of net asset value (NAV) and other ETF terminology from the etf.com glossary.
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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.
