ETF market price and NAV: compare the right numbers

AI-assisted Stockatlass editorial. Educational information, not investment advice. An ETF page can show both a trading price and net asset value, or NAV. Before comparing them, identify what each figure measures. The SEC's ETF guidance distinguishes the price investors trade on an exchange from the value of the fund's portfolio per share. NAV per share subtracts a fund's liabilities from its assets and divides the result by its shares. The U.S. registered ETFs discussed in the guidance calculate it each business day. Their exchange prices can change throughout the trading session. A price above NAV is called a premium; a price below it is a discount. Those relationships can change over time. A useful research note records the fund's exact identity, the price timestamp and the NAV date before drawing a comparison. Check the fund website or prospectus for its history of premiums and discounts. Treat a discount as a question to investigate, rather than evidence that a fund is automatically a bargain. A comparison without its dates leaves out part of the information. Then read what the product actually owns. The SEC's fund-comparison bulletin warns that a product's name alone may not establish its structure. Some funds are concentrated, and an ETF can even track a single stock. Fees and expenses also matter regardless of performance. These sources describe U.S. funds registered under the Investment Company Act of 1940, rather than every exchange-traded product worldwide. For a fund listed elsewhere, check its own prospectus and local disclosures. Understanding the number on a screen starts with understanding the product behind it. Sources checked: 2026-10-19 (Asia/Kolkata).