What is an ETF premium or discount?
An ETF premium or discount compares its market price per share with its NAV per share. If the market price is higher than NAV, the share trades at a premium; if it is lower, it trades at a discount. This worksheet shows the difference and expresses it as a percentage of NAV.
How is the percentage calculated?
Subtract NAV from the market price, then divide that difference by NAV and multiply by 100. For a hypothetical comparison with a $101 market price and $100 NAV, the difference is $1 per share and the premium is 1%. If price were $99 against the same $100 NAV, the result would be a $1 difference and a 1% discount. These are arithmetic examples only, not quotes for an ETF.
The percentage uses NAV as its denominator. This makes the reported direction and calculation explicit: above NAV is positive, below NAV is negative, and equal values produce 0%. Enter price and NAV in the same currency and per-share units. The worksheet rejects zero or negative values because a percentage relative to zero NAV is undefined and these inputs are not meaningful for this comparison.
Why do timestamps matter?
ETF shares trade at market prices during the trading day, while NAV is calculated on a schedule. The SEC’s Investor.gov explains that market prices can fluctuate during the day and may differ from NAV. Its guidance also points investors to fund websites and prospectuses for closing prices, NAV, and historical premium or discount information. Record the date, time, timezone, and source for both observations, and avoid treating mismatched observations as a like-for-like measurement.
For example, comparing an intraday market price with the prior business day’s closing NAV can show a difference that partly reflects a different observation time. The result here does not correct that timing mismatch. For a useful comparison, consult the fund’s published data and note whether the price is a last trade, bid, ask, or closing market price, then use a NAV value with a clearly stated calculation date.
What does this result not tell me?
A premium or discount is a snapshot, not a forecast, guarantee, or standalone measure of value. It does not say whether a difference will narrow, how quickly it might change, or whether a trade can be completed at the entered price. It excludes bid-ask spreads, brokerage costs, taxes, fund expenses, and any difference caused by stale or differently timed underlying asset prices. It also does not assess the ETF’s investment objective, holdings, liquidity, risks, or suitability.
Use the fund’s own disclosures to verify the data definitions and dates. The SEC notes that an ETF’s market price may be higher or lower than NAV and that historical premium and discount information is generally available in the prospectus or on the fund’s website. This tool is a simple calculation from your entries; it does not validate those disclosures.
Sources and date: SEC Investor.gov, Updated Investor Bulletin: Exchange-Traded Funds (2023-02-23) and Characteristics of Mutual Funds and ETFs (2025-04-29), accessed 2026-11-03.
This educational worksheet is not a recommendation to buy or sell an ETF and is not financial, tax, or legal advice.
Frequently asked questions
Does this worksheet use live ETF quotes?
No. You enter the market price, NAV, separate observation times, and a timezone/source label. The result only compares those inputs.
What does a positive percentage mean?
It means the entered market price is above entered NAV, so the arithmetic comparison is a premium. A negative result means price is below NAV, a discount.
Can I compare an intraday price with yesterday’s NAV?
You can enter those values, but the timestamps differ and the result may reflect that mismatch. Record both dates and consult the fund’s definitions before interpreting it.
Does a discount mean an ETF is undervalued?
No. A discount is only the price-to-NAV relationship for the values and times entered. It does not establish fair value or predict what happens next.