Glossary for Investors

NAV – Net Asset Value

Net asset value is a representation of value for a mutual fund, ETF, REIT (real estate investment trust), or other investment company or fund. It is calculated as the per-share value of the company or fund’s assets minus liabilities, and can be calculated by a simple formula:

NAV = total assets – total liabilities

Unlike the second-by-second valuations of publicly traded stocks, which are traded in real-time, funds and investment companies rely on NAV as a pricing mechanism for trades or redemptions. NAV may be calculated daily, monthly, or at some other regular cadence depending on the fund. For more, please see the SEC article on the topic.

Full Glossary