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Net asset value (NAV) per share is an investment fund’s net assets divided by its outstanding shares. To calculate it, subtract the fund’s liabilities from its assets, then divide the result by the number of shares. For example, $100 million in assets minus $10 million in liabilities, divided among 10 million shares, gives a NAV of $9 per share.
What NAV per share measures
NAV is the value of an investment company’s assets after its liabilities are subtracted. NAV per share expresses that net value on a per-share basis. It is a measure of the fund’s net assets—not the value of a single investment in its portfolio.
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Fund assets can include portfolio investments, cash and accrued income. Liabilities can include accrued expenses. The precise assets, liabilities and valuation procedures depend on the fund’s disclosures.
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How to calculate NAV per share
Use the assets and liabilities for the fund—or for the relevant share class—and divide the resulting net assets by the shares outstanding for that fund or class:
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NAV per share = (total assets − total liabilities) ÷ shares outstanding
Worked example
- Start with total assets of $100 million.
- Subtract $10 million in liabilities: $100 million − $10 million = $90 million in net assets.
- Divide $90 million by 10 million shares outstanding: $90 million ÷ 10 million = $9 per share.
This is the example given by Investor.gov. The result can change when the fund’s asset values, liabilities or share count changes.
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Is NAV per share the price an investor pays?
Not always. Mutual fund and traditional unit investment trust (UIT) purchase or redemption prices are based on per-share NAV, adjusted for applicable fees. A shareholder’s final transaction amount may therefore differ from NAV per share. Investor.gov explains the mutual-fund pricing relationship in its mutual fund guidance.
ETF market price and NAV
ETF shares trade on an exchange, so their market price reflects supply, demand and market conditions. It can be above or below NAV per share. ETF creation and redemption activity, along with arbitrage, can help bring market prices closer to NAV, but the two figures are distinct. The SEC’s ETF bulletin explains this relationship.
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| Measure | What it represents | What affects it |
|---|---|---|
| NAV per share | The fund’s net assets allocated per share | Asset valuations, liabilities and shares outstanding |
| ETF market price | The price at which ETF shares trade on an exchange | Supply, demand and market conditions, as well as the relationship between trading and the fund’s underlying value |
When funds calculate NAV
Mutual funds and UITs generally calculate NAV at least once each business day, typically after major U.S. exchanges close. Closed-end funds are not subject to that daily calculation requirement, according to Investor.gov. ETFs calculate NAV per share every business day, as described in the SEC’s ETF guidance.
The exact calculation time is fund-specific. One SEC-filed fund disclosure says that fund ordinarily calculates NAV as of the NYSE regular close, normally 4:00 p.m. Eastern, on days the exchange is open. That stated time applies to that fund, not necessarily to every fund. The disclosure also describes portfolio investments, cash, other assets, accrued income and liabilities as calculation inputs; each fund’s own valuation policy should be checked in its filings.
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Why NAV changes
A fund’s holdings and other assets can change in value, and liabilities or the number of shares outstanding can change as well. Since all three inputs affect the calculation, NAV per share can move from one calculation to the next.
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