NAV stands for Net Asset Value and represents the per-share value of a fund’s net assets.
For most funds, NAV is calculated at the end of each trading day as: NAV = (Total Assets − Liabilities) ÷ Shares Outstanding. Total assets cover the fund’s investments, cash, and receivables; liabilities include obligations such as accrued expenses and other payables.
For mutual funds, NAV is the price at which shares are issued or redeemed at the end of the day. For exchange-traded funds (ETFs), an official end-of-day NAV is used for accounting, while ETF shares trade on an exchange throughout the day at market prices that can differ from the NAV.
NAV reflects values of holdings as of the close of the trading day and may not capture intraday price swings. Illiquid holdings or securities valued with estimates can cause the NAV to differ from the prevailing market values.
If a fund has total assets of $1.2 billion, liabilities of $20 million, and 100 million shares outstanding, the NAV per share would be ($1.2B − $20M) ÷ 100M = $11.80.
Mutual Fund · Exchange-Traded Fund (ETF) · Total Assets · Liabilities · Shares Outstanding · Net Asset Value per Share