NEVER BUY ETFs without checking this - iNAV - the most important param скачать в хорошем качестве

NEVER BUY ETFs without checking this - iNAV - the most important param

iNAV (Indicative Net Asset Value) is a real-time estimate of the net asset value (NAV) of an Exchange Traded Fund (ETF). It provides investors with a snapshot of the fund’s value throughout the trading day, enabling better decision-making when buying or selling ETF units on the stock exchange. Key Points About iNAV: 1. Real-Time Calculation: Unlike the traditional NAV, which is calculated once a day after market hours, iNAV updates in real-time based on the value of the ETF’s underlying assets. 2. Purpose: • Helps investors track the fair value of the ETF during trading hours. • Prevents buying or selling the ETF at prices significantly deviating from its actual value. 3. How It’s Calculated: iNAV is derived by summing the real-time prices of the ETF’s underlying assets (e.g., stocks or bonds) and dividing by the total number of ETF units. Adjustments are made for expenses or any changes in the fund. 4. Where to Find iNAV: Most ETFs publish their iNAV on their website or through stock exchanges where the ETF is traded. 5. Limitations: • iNAV may not reflect real-time prices accurately during high volatility or illiquidity. • For international ETFs, iNAV might lag when foreign markets are closed. Example: If an ETF invests in the Nifty 50, its iNAV will reflect the real-time value of the 50 stocks within the index. If Nifty rises during the day, the iNAV will also increase accordingly. Investors use iNAV to ensure they trade ETFs at fair market prices, avoiding significant premiums or discounts.