An ETF's market price is what shares trade for on the exchange during the day; NAV is the fund's end-of-day per-share value from its holdings. The two can differ—shown as a premium or discount—especially when hedging or creation/redemption is costly, without that difference meaning the ETF has "failed."
Covered in: Why ETFs Surface Liquidity Constraints Faster Than Mutual Funds · How ETFs Actually Trade (book) · ETF Market Structure Explained (book)
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This material is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security.
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