Search
Search for an ETF or holding
Search for an ETF or holding
Updated 2mo ago.
Updated 2mo ago.
The Net Asset Value of an ETF represents the total value of all its assets minus its liabilities, divided by the number of outstanding units. It is calculated at market close each day. An ETF's market price fluctuates in real time throughout the day but generally stays very close to its NAV.
If VEQT.TO holds 13,000 stocks with a total value of $50 billion, and there are 1 billion units outstanding, the NAV is $50 per unit. If the market price is $50.05, the premium to NAV is 0.1% — normal and acceptable for a popular ETF.
A large gap between market price and NAV (called a premium or discount) can signal a liquidity issue or market inefficiency. For large, popular Canadian ETFs like VEQT.TO or XEQT.TO, this gap is typically tiny (less than 0.1%) thanks to arbitrageurs who keep prices aligned.