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.

RELATED TERMS
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  3. Premium

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  5. Exchange-Traded Fund - ETF

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RELATED FAQS
  1. What is a mutual fund's NAV?

    Net asset value (NAV) represents a fund's per share market value. This is the price at which investors buy ("bid price") ... Read Full Answer >>
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