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ETF Dictionary

ETF Term: What is NAV (Net Asset Value)?

In the world of investment and the stock market, you may have come across the term NAV Let’s explore the meaning with KIS Vietnam.

1. What is Net Asset Value (NAV)? 

  • The term NAV is abbreviated Net Asset Value  per unit
  • NAV refers to the total value of assets held by a fund or company, minus any liabilities, divided by the number of outstanding shares,
  • With ETF, it represents the price of an ETF -Exchange Traded Fund. The term NAV is the total value of all the securities in basket divided by the number of shares of each security in the portfolio. NAV shows the value of an ETF share.

2. Formula to calculate NAV (Net Asset Value)?

Công thức tính (NAV) Chỉ số Net Asset Value

  • The formula of NAV is calculated as follows:

=> NAV = (Total assets – total liabilities)/ number of ETFs in circulation on the market. 

  • In general, NAV/CCQ is not the most important factor for investors to consider which ETF to invest in. You need to research fund managers, performance, and reputable ETF creators before investing in ETFs.

With the above information, Investors can make better investment decisions by understanding the term of  NAV

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