NAV Return

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DEFINITION of 'NAV Return'

The change in the net asset value of an exchange-traded fund (ETF) or mutual fund over a given time period. The NAV return of an ETF or mutual fund can be different than the total return that investors realize because these products can trade at a premium or discount to the price of the fund and to the value of the assets held in the portfolio.

INVESTOPEDIA EXPLAINS 'NAV Return'

Many investors will monitor the NAV return instead of total return. It is a better measure of comparing the relative performance of several funds because it ignores the market forces that can cause some funds to trade at a premium or discount to their net asset values.

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  3. What are some examples of smart beta ETFs that use passive and active management?

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  4. What happens when I want to sell my A-shares of a mutual fund?

    Typically, commissions or other sales charges may apply when a mutual fund is sold. This is an important factor in deciding ... Read Full Answer >>
  5. What does the information ratio tell about the design of a mutual fund?

    The information ratio can tell an investor how well a mutual fund is designed to deliver excess or abnormal returns as well ... Read Full Answer >>
  6. Is it better to buy A-shares or a no-load mutual fund?

    Mutual funds and other pooled investments are popular among investors because they provide a level of diversity and professional ... Read Full Answer >>
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