What is an ETF's NAV?

NAV (net asset value) is the value of an ETF's underlying portfolio per share. Conceptually, you take the total value of the holdings, subtract any liabilities, and divide by the number of shares.

ETFs trade on exchanges at market prices, which can be slightly above (premium) or below (discount) NAV. In many large, liquid ETFs, premiums/discounts are usually small because market participants can arbitrage gaps.

NAV is still useful for investors. It helps you gauge whether you're buying at a notable premium or discount, and it's a reminder that the ETF's value ultimately comes from what it holds, not just the ticker price.