Premiums and Discounts

ETF Premium or Discount: How to Compare Market Price With NAV

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ETF premium or discount

Hi, this is Kkoogongnam. An ETF premium or discount is the gap between the price you can trade on an exchange and the per-share value of the ETF’s portfolio. If the market price is above net asset value, the ETF trades at a premium. If it is below net asset value, the ETF trades at … Read more

What Is an ETF? How It Works and What to Check

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What Is an ETF? How It Works and What to Check

What is an ETF? An exchange-traded fund pools investors’ money into a portfolio and issues shares that trade on an exchange during the day. The definition is simple, but two ETFs that follow similar markets can still produce different investor experiences because of expenses, tracking, premiums or discounts, and trading spreads. This guide explains not … Read more