ETF iNAV: Your Real-Time Guide to the Fair Value of ETFs

What is ETF iNAV?

The Indicative Net Asset Value (iNAV) is an intraday estimate of an ETF's fair value per share. Unlike the Net Asset Value (NAV) of a mutual fund, which is calculated at the end of the trading day, the iNAV is updated frequently (often every 15 seconds) throughout market hours. To gauge this fair value in real time, it is important to look at the iNAV published on the stock exchange or the AMC’s website. 

Why iNAV Matters for Investors

iNAV serves as a crucial benchmark for ETF investors. It offers transparency and helps in assessing the fair price of an ETF during the trading day. By comparing the live market price of an ETF to its iNAV, investors can make more strategic entry and exit decisions. For active traders, this real-time valuation acts as a valuable tool for timing their trades effectively.

iNAV vs. Market Price

While iNAV represents the estimated fair value of an ETF based on the intraday value of its underlying portfolio, the market price is the price at which the ETF is currently being traded on the stock exchange. The market price of the ETF units varies based on the supply and demand for the units at that particular time of the trading day. Ideally, the market price should be very close to the iNAV. However, certain factors like high market volatility or low trading volumes may  cause the market price to deviate, creating a premium (market price > iNAV) or a discount (market price < iNAV).

How to Check iNAV

Investors may typically find the iNAV of an ETF on the website of the Asset Management Companies (AMCs) that offer the ETFs. Many trading platforms also display the iNAV alongside the market price of ETFs. You can find the iNAV for all the ETFs offered by Zerodha Fund House here.

Limitations of iNAV

While iNAV is an effective tool, it has its limitations. The calculation can sometimes be based on prices that are not fully updated, especially for ETFs that hold international securities trading in different time zones. Additionally, in highly volatile markets, the update interval might not fully capture rapid price movements. It's also important to remember that iNAV is only an indicative value  and not a price at which ETF units can be bought or sold.

Conclusion

For anyone investing in ETFs, understanding iNAV is very important. It provides a transparent and real-time measure of an ETF's fair value, empowering investors to make more informed and timely trading decisions. By keeping an eye on the iNAV, you can better navigate the dynamic world of ETF trading.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully

Please note that this article or document has been prepared on the basis of internal data/ publicly available information and other sources believed to be reliable. The information contained in this article or document is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party in any manner. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article or document.

Published on 17th Sep 2025