How to Use the ETF NAV Premium/Discount Calculator
ETFs trade throughout the day like stocks, but the market price you pay doesn't always match the net asset value (NAV) — the actual value of the underlying holdings. This calculator takes the market price and NAV and computes the premium or discount percentage and dollar difference.
A positive premium means the ETF is trading above its NAV, while a negative discount means it's trading below. Buying at a premium means paying more than the fund's theoretical fair value.
Market makers and authorized participants generally keep large, liquid U.S. ETFs within roughly ±1% of NAV through the creation/redemption mechanism. International, commodity, or thinly traded ETFs can see wider gaps, especially around foreign market holidays, currency swings, or sudden volatility — so it's worth checking before you buy.
Frequently Asked Questions
A positive premium means the market price is trading above the ETF's net asset value (NAV). This often happens with popular or thinly traded international and commodity ETFs, and buying at a premium means paying more than the fund's theoretical fair value.
Ideally yes — authorized participants and market makers usually keep it within about ±1%. But during sharp market moves, trading halts, or for ETFs holding foreign assets, the gap can widen temporarily.