DEFINITION of 'Indicative Net Asset Value - iNAV'

A measure of the intraday net asset value (NAV) of an investment, such as an exchange-traded fund (ETF), which gives an updated measure of the value of the investment based on its assets less its liabilities. An investment's NAV is usually calculated at the end of the trading day, but the indicative NAV measure gives a more real-time view of this value.

Also referred to as "indicative value".

BREAKING DOWN 'Indicative Net Asset Value - iNAV'

Indicative NAV is not the price at which you can purchase the instrument; it is only used as a reference for the investment's underlying value. In many cases, the ETF will actually trade at a premium or discount to the NAV due to various factors, including supply and demand, and expectations.

RELATED TERMS
  1. Asset Value Per Share

    The total value of a fund's investments divided by its number ...
  2. NAV Return

    The change in the net asset value of an exchange-traded fund ...
  3. Net Asset Value - NAV

    A mutual fund's price per share or exchange-traded fund's (ETF) ...
  4. Redemption Mechanism

    Refers to how market makers of exchange traded funds (ETF) can ...
  5. Mark To Market - MTM

    1. A measure of the fair value of accounts that can change over ...
  6. Index ETF

    Exchange-traded funds that follow a specific benchmark index ...
Related Articles
  1. Investing

    How to Calculate the Value of an ETF

    An ETF is a good way to get broad exposure without taking on specific risk, but calculating performance may be a bit tricky.
  2. Investing

    3 Key Questions to Ask Prior to an ETF Investment

    Discover which factors to consider before investing in an ETF, such as the goal of your investment, the preferred asset class, and the asset size and volume.
  3. Investing

    ETFs Characteristics for Short-Term Trading

    Not all ETFs fit the short-term trading scenario. Investopedia tells you the main characteristics to shortlist ETFs for the best trading fit.
  4. Investing

    Mutual Fund Or ETF: Which Is Right For You?

    Learn the differences between these investment products and how to take full advantage.
  5. Investing

    Market Value Versus Book Value

    Understanding the difference between book value and market value is a simple yet fundamentally critical component to analyze a company for investment.
  6. Investing

    5 Reasons to Pick ETFs Over Mutual Funds

    Discover five reasons why average investors and sophisticated hedge funds choose ETFs instead of mutual funds to meet their investment goals.
  7. Investing

    ETFs Can Be Safe Investments, If Used Correctly

    Learn about how ETFs can be a safe investment option if you know which funds to choose, including the basics of both indexed and leveraged ETFs.
  8. Investing

    A Look At the Growth Of the ETF Industry

    Explore the phenomenal growth rate of the ETF industry, and learn some of the principal reasons why ETFs are projected to continue to grow at a rapid pace.
  9. Investing

    How To Pick The Best ETF

    Of the hundreds of exchange-traded funds on the market, some are bound to fail. Learn how to pick the best of the bunch.
  10. Investing

    4 Ways to Evaluate ETFs Before Buying

    Learn four areas in which to evaluate an ETF investment to be sure that the investor has a clear understanding of the security being purchased.
RELATED FAQS
  1. How can I check to see if an ETF’s price reflects its asset value?

    Learn how an investor can find the net asset value for an exchange-traded fund and why the net asset value and market value ... Read Answer >>
  2. What is the difference between book value per common share and NAV (net asset value)?

    Understand the difference between book value per common share and net asset value, and learn how these evaluations are used ... Read Answer >>
  3. What are the advantages of investing in ETFs with high trading volume?

    Learn about the advantages of exchange-traded funds with higher volume and liquidity, and understand how covered call options ... Read Answer >>
  4. What can cause an asset to trade above its market value?

    Learn some of the factors that can affect the price of an investment asset and the major reasons why an asset might trade ... Read Answer >>
  5. Why do some closed-end mutual funds trade above or below their net asset values?

    Intuition tells us that a mutual fund's net asset value (NAV) (the net value of all assets within the mutual fund's portfolio ... Read Answer >>
  6. What is the difference between a company's book value per share and its intrinsic ...

    Book value and intrinsic value are two ways to measure the value of a company.In simple terms, book value is based on the ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center