Net asset value

Net asset value, usually shortened to NAV, is the total value of everything a fund holds, minus any liabilities, divided by the number of fund shares outstanding. It represents the per-share price of the fund itself.

Mutual funds calculate and publish their NAV once per day after markets close, and that is the price at which shares are bought and redeemed. ETFs also have a NAV, but because ETFs trade continuously on an exchange, their market price can drift slightly above or below NAV during the day before typically converging back to it.