Learn/Direxion ETF University 1/What is iNAV?

What is iNAV?

The iNAV is a measure of the intraday net asset value (NAV) of an ETF, giving an updated measure of the value based on its assets less its liabilities.

A key term to understand is Indicative Net Asset Value (or iNAV).

The iNAV is a measure of the intraday net asset value (NAV) of an 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. It is also referred to as "indicative value".

When shares are in short supply in the secondary market, ETFs may trade at a premium to the iNAV. The result could be that an investor may buy shares at a price that is inflated to the total market value of the underlying holdings of the fund. Conversely, when there is a surplus of shares in the marketplace, ETFs may trade at a discount, allowing investors to buy shares at a price that is below the total market value of the underlying holdings of the fund.

This situation is typically resolved relatively quickly through the creation and redemption process. As new shares are introduced to or removed from the market, supply and demand come back into relative balance and the prices ordinarily return to closer alignment with the iNAV.

Webull and Direxion are separate and unaffiliated companies, and are not responsible for one another’s policies, services, or opinions. ETFs are subject to risk similar to those of their underlying securities, including, but not limited to, market, investment, sector, or industry risks, and those regarding short-selling and margin account maintenance. Some ETFs may involve international risk, currency risk, commodity risk, leverage risk, credit risk, and interest rate risk. Performance may be affected by risks associated with nondiversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small-capitalization securities, and commodities. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).