What is iNAV and how is it calculated?
The indicative or intraday Net Asset Value (iNAV) is calculated by taking the last traded price of all the assets in the ETF basket, multiplying it by the sum of the number of shares in the ETF creation basket and the cash component (money not invested in the ETF), and then dividing this total by the total number of ETF shares in the creation basket. This calculation provides a real-time reference point for investors to assess the fair value of the ETF compared to its market price on the stock exchanges.
iNAV =
(last traded price of all the securities in the ETF basket × number of shares in the ETF creation basket) +cash component
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total ETF units in the creation basket
What is the difference between NAV and iNAV?
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