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Net asset value

What one share of a fund is worth: the value of everything the fund owns, minus what it owes, divided by its number of shares.

Mutual funds are bought and sold at the NAV calculated after the market closes each business day.

ETFs trade all day at a market price that usually stays close to the NAV. When the price is above it, the ETF trades at a premium. Below it, at a discount.

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