Cryptocurrency Q&A Why do ETFs trade at a discount to NAV?

Why do ETFs trade at a discount to NAV?

HanRiverVisionaryWave HanRiverVisionaryWave Thu Jan 02 2025 | 5 answers 1272
I'm wondering why Exchange Traded Funds (ETFs) sometimes trade at a price that is lower than their Net Asset Value (NAV). What are the reasons behind this discount? Why do ETFs trade at a discount to NAV?

5 answers

GinsengGlory GinsengGlory Sat Jan 04 2025
During such times, investors can acquire ETF shares at a price lower than the value of the underlying assets.

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Valeria Valeria Sat Jan 04 2025
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Paolo Paolo Sat Jan 04 2025
Investors are currently paying a premium for the shares of that ETF.

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Martino Martino Sat Jan 04 2025
This means the market price of the ETF's shares exceeds the actual value of the assets it holds.

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Sara Sara Sat Jan 04 2025
Conversely, when an ETF's market share price falls below its NAV, a discount is created.

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