What is an ETF's premium/discount?
It's how far the ETF's market price is above (premium) or below (discount) its NAV at a point in time.
February 17, 2026
An ETF's premium/discount is the difference between the market trading price and the fund's NAV. If price is above NAV, it's at a premium; if below, it's at a discount.
In liquid equity ETFs, premiums/discounts are often small. They can widen when markets are volatile, when the underlying assets are illiquid (some bonds), or when underlying markets are closed (some international holdings).
If you trade niche ETFs, check premium/discount history and bid-ask spreads. Using limit orders can help you avoid buying at an inflated premium or selling at an unusually deep discount.
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