Okuzeka
Investing & the Stock Market vocabulary · Funds & ETFs

Net asset value

Meaning in investing & the stock market, with examples

/ˌnet ˈæset ˌvæljuː/nounCommon term

In investing & the stock market, net asset value means: The value of a fund's assets minus its liabilities, usually divided by the number of units to give the price of one unit of the fund.

In Turkish: net varlık değeri, birim pay değeri, fon fiyatı

How it is used

Usually shortened to NAV and said letter by letter. Mutual funds are bought and sold at the NAV calculated at the end of the day. ETFs trade at market prices that may be slightly above (a premium) or below (a discount) their net asset value.

Example sentences

  1. The fund's net asset value per unit rose 2 percent this week.

  2. The closed-end fund trades at a 15 percent discount to its net asset value.

Common collocations

  • net asset value per share
  • NAV per unit
  • discount to NAV
  • premium to NAV
  • daily NAV
  • mutual fundA fund that collects money from many investors and uses it to buy a mix of shares, bonds or other assets, managed by professionals and priced once a day.
  • ETFShort for exchange-traded fund: a fund that holds a basket of assets, often following an index, and whose units are bought and sold on a stock exchange like shares.
  • expense ratioThe yearly cost of running a fund, shown as a percentage of the money invested in it. It is taken from the fund's assets, so it reduces investors' returns.
  • book valueThe value of a company according to its balance sheet: total assets minus total liabilities. It is the shareholders' equity shown in the accounts.

More terms: Funds & ETFs

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This page explains English vocabulary for learners. It is not financial advice.