ETF Mechanics
ETF Discount
Definition
What is ETF Discount?
The amount by which an ETF's market price falls below its net asset valueThe value of a fund's assets minus its liabilities, usually expressed in total and per unit. per share.
Example in practice
How This Looks in Practice
An ETF at ₦9.80 with NAV of ₦10 trades at a 2% discount.
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Related Terms
ETF Mechanics
Creation Unit
A large block of ETF shares exchanged between the fund and authorised participants.
ETF MechanicsAuthorised Participant
A financial institution permitted to create and redeem ETF shares directly with the fund.
ETF MechanicsETF Premium
The amount by which an ETF's market price exceeds its net asset value per share.
Fund OperationsDealing Cut-Off Time
The deadline by which a valid fund instruction must be received for a particular dealing day.