Archive · 26 Jul 2026
ETF Market Price vs NAV: Premiums and Discounts Explained
ETFs, or exchange-traded funds, have two important values: their market price and their net asset value (NAV).
The market price is what you pay when you buy or sell an ETF on the stock exchange, while the NAV is the value of the investments inside the ETF.
Sometimes, ETFs can trade at a premium, meaning their market price is higher than their NAV, or at a discount, meaning their market price is lower than their NAV.
This happens because of things like how much people want to buy or sell the ETF, how easy it is to trade, and big price changes in the investments the ETF holds.
For example, some ETFs that focus on specific sectors or silver might trade at big discounts because there aren't as many buyers and sellers, and the prices of the metals they invest in can change quickly.
On the other hand, ETFs that track the Nifty 50 index usually trade very close to their NAV because there are lots of buyers and sellers.
Investors should compare the market price and NAV before buying an ETF to make sure they're getting a good deal.
ETFs trade at market prices on stock exchanges, unlike mutual funds which trade at NAV.
ETFs can trade at a premium (market price above NAV) or a discount (market price below NAV).
Sectoral and silver ETFs often trade at significant discounts due to lower liquidity and speculative trading.
Nifty 50 ETFs typically trade within a narrow 0.1% to 0.6% discount to NAV.
International ETFs often trade at high premiums due to restrictions on fresh unit creation and strong investor demand.
- Who
- Investors, ETF fund houses, market analysts.
- What
- ETFs trading at premiums and discounts relative to their NAV.
- When
- As of 23 July 2026.
- Where
- Stock exchanges where ETFs are traded.
- Why
- Due to factors like liquidity, investor demand, and market conditions.
Sectoral and Silver ETFs
Nifty 50 ETFs
Discounts
Sectoral and Silver ETFs
Sectoral and silver ETFs often trade at significant discounts due to lower liquidity, speculative trading, and sharp price movements.
Nifty 50 ETFs
Nifty 50 ETFs typically trade within a narrow 0.1% to 0.6% discount to NAV, reflecting efficient pricing.
- Market Price
- Price at which ETFs are bought and sold on stock exchanges.
- Net Asset Value (NAV)
- Per-unit value of the securities held by the ETF, calculated by the fund house.
- Premium
- Market price above NAV.
- Discount
- Market price below NAV.
- Indicative NAV (iNAV)
- Near real-time estimate of the ETF's intrinsic value, updated throughout market hours.