Capital Management

Why an ETF’s Price Can Differ From Its NAV

By Walid Mograbi · 2026-07-26 · 2 min read

Learn to distinguish between an ETF’s live trading price and its NAV, and evaluate entry or exit cost using a quick, practical check.

Core idea

An ETF is priced in real time during the trading session. Its market price changes like a stock, while the NAV is calculated at the end of the day from the fund’s underlying assets.

NAV vs. market price

The NAV is a valuation measure of the fund’s assets (minus liabilities) divided by shares, while the market quote is the immediate buy/sell price you see in the session.

Premium and discount

If the market price is above NAV, the ETF is trading at a premium. If it is below NAV, it is at a discount. Neither side is automatically a guaranteed opportunity.

Why deviations appear

Differences usually come from liquidity conditions, timing differences in how assets are valued, or shifts in demand and supply during trading. Check a fund’s history of deviations before taking action. ,# Practical benefit of this lesson Understanding this gap helps you estimate the true cost of entering or exiting more accurately than relying only on the displayed tick price at the moment of purchase/sale.