NAV Return

Filed Under » ,
Dictionary Says

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 Says

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.  

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Exchange-Traded Fund - ETF

    A security that ...
  2. Mutual Fund

    An investment ...
  3. Net Asset Value - NAV

    A mutual fund's ...
  4. Asset Size

    The total market ...
  5. Total Return

    When measuring ...
  6. Premium

    1. The total ...
  7. China ETF

    Exchange-traded ...
  8. Index

    A statistical ...
  9. Reverse Gold ETF

    Exchange traded ...
  10. REIT ETF

    Exchange-traded ...

Articles Of Interest

  1. What is a mutual fund's NAV?

  2. Open Your Eyes To Closed-End Funds

    Although less popular than their open-ended counterparts, these investment vehicles are worth a second look.
  3. Build A Model Portfolio With Style Investing

    This sophisticated approach will add flair to your returns.
  4. 5 Common Misconceptions About ETFs

    The rise in these funds' popularity has contributed to misinformation about what they are and how they work. Learn more here.
  5. Using ETFs To Build A Cost-Effective Portfolio

    ETFs are a viable alternative to mutual funds, but before you invest, there are a few things you should know.
  6. Can Regular Investors Beat The Market?

    With the big name competition out there, hard-working people who invest have a tough time beating the market.
  7. Reinvesting Capital Gains In Leveraged Portfolios

    Don't get forced into action. Learn how to plan properly to avoid making rash decisions.
  8. Hedging With ETFs: A Cost-Effective Alternative

    The benefits of ETFs for hedging are clear and investors of all sizes are taking notice.
  9. Going Green With Exchange Traded Funds

    As investors become more environmentally conscious, the exchange traded fund market is following.
  10. Cutting Edge Options Trades: The Zero-Premium Hedge

    This options trade is essentially free and can have huge profit potential, but it's not without its risks.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center