Do ETFs trade at NAV?

ETFs trade on exchanges at market prices set by buyers and sellers. That price is not always exactly the same as NAV (net asset value), which is the value of the underlying holdings per share.

A creation/redemption process and arbitrage by large market participants often keeps ETF prices close to NAV. But premiums and discounts can occur, especially when markets are volatile or the underlying holdings are less liquid.

For most large, liquid ETFs, premiums/discounts are usually small. If you're trading a niche ETF, it's worth checking the fund's published premium/discount history and using limit orders if spreads are wide.