Also called NAV
Net asset value
What one share of a fund is actually worth, based on what the fund holds. A mutual fund always trades at it; a closed-end fund often does not.
Updated 2026-09-05
How it is calculated
Net asset value = (assets − liabilities) ÷ shares
Net asset value is what one share of a fund is worth based on what the fund actually holds: total assets minus liabilities, divided by shares outstanding.
For a mutual fund it is the price, by construction. For a closed-end fund it is a reference point the market price may ignore. For an etf the arbitrage mechanism keeps the two within a fraction of a percent under normal conditions, and the gap widening is itself a signal that conditions are not normal.
See also
- Mutual fund — A pooled fund that issues and redeems shares continuously at net asset value, priced once a day after the close rather than traded live.
- Closed-end fund — A fund with a fixed share count that trades on an exchange. Its price can sit above or below the value of what it holds, sometimes for years.
- ETF — A basket of securities that trades on an exchange like a single stock. Most track an index, charge very little, and can be bought and sold all day.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
