I am considering investing in Exchange Traded Funds (ETFs) and I am wondering if they typically trade at a discount to their Net Asset Value (NAV). I want to understand if buying ETFs at a discount is a common occurrence.
            
            
            
            
            
            
           
          
          
            5 answers
            
            
  
    
    TaekwondoPower
    Thu Jan 02 2025
   
  
    Market prices are influenced by the forces of supply and demand.
  
  
 
            
            
  
    
    IncheonBeautyBloomingRadianceGlow
    Thu Jan 02 2025
   
  
    Due to these market dynamics, an ETF's market price can vary from its NAV.
  
  
 
            
            
  
    
    Skywalker
    Thu Jan 02 2025
   
  
    When there is a significant demand from buyers, the ETF's price can rise above its NAV. This situation is known as a premium.
  
  
 
            
            
  
    
    SoulStorm
    Wed Jan 01 2025
   
  
    Conversely, if there is substantial sell-side pressure, the ETF's price can fall below its NAV. This occurrence is termed as a discount.