What is net asset value?

Net Asset Value is the net value of an investment fund's assets less its liabilities, divided by the number of shares outstanding. Funds can be open or closed and the pricing of each share is based on NAV. The price of each fund share is reflected as the NAVPS or per-share value.

What is a net asset value (NAV) of an ETF?

The net asset value (NAV) of an ETF represents the value of each share’s portion of the fund’s underlying assets and cash at the end of the trading day. ETFs calculate the NAV at 4:00 p.m. Eastern Time after the markets close. The NAV is determined by subtracting any liabilities from the value of all assets in the fund including assets and cash.

Are ETFs based on net asset value?

Exchange-traded funds (ETFs) hold a portfolio of stocks, much like a mutual fund, but trade throughout the day on stock exchanges. Despite this difference, ETFs are still valued based on their net asset value (NAV), which depends on the prices of the positions that it holds.