Net Asset Value (NAV)
Net Asset Value (NAV) represents the per-share value of a mutual fund, exchange-traded fund (ETF), or closed-end fund, calculated by dividing the total value of the fund's assets minus its liabilities by the number of outstanding shares. NAV is used to determine the price at which investors can buy or sell fund shares. It reflects the value of the fund’s underlying assets, and changes daily as market prices fluctuate.
Example
An investor checks the NAV of a mutual fund and sees it is $15 per share. If the investor wants to buy 100 shares, they would pay $1,500 based on the current NAV.
Key points
• Represents the per-share value of a mutual fund, ETF, or closed-end fund.
• Calculated by dividing the total value of assets minus liabilities by the number of outstanding shares.
• Reflects the value of a fund’s underlying assets and is used to price buy/sell transactions.
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