Wednesday, December 29, 2010

Discount to NAV

The term discount to NAV refers to the difference between the market price of shares in an ETF or closed-end mutual fund and the underlying NAV (Net Asset Value). For most ETFs the discount is relatively low because any significant difference will present arbitrage profit opportunities, however some variance can persist in closed-end funds.

Synonyms: Price to NAV

If you have any further questions or would like to add to the entry above, then please submit your thoughts below.

No comments:

Post a Comment