Price Indicator

Since ETFs are funds existing in both primary market and secondary market, their prices exist in 2 types. When they are created in the primary market, the net asset value (NAV) of ETFs, which is determined by market value of the spot basket comprising the PDF, is the price in the primary market. In the secondary market, the price is the price of ETF securities which is determined when the listed ETF is traded. ETF price indicators include the NAV of an ETF, market price at which an ETF is traded on the market, tracking indexes and dividends.

Net Asset Value

The Net Asset Value (NAV) of ETFs is the theoretical value of the ETFs and represents the ETFs' own asset value. One of the core components is the aggregated value of underlying securities included in an ETF. In addition to underlying securities, ETFs may hold cash, other assets or liabilities. NAV per share is calculated as follows: first, the NAV is calculated by deducting the liabilities from the asset. Then the NAV per share is calculated by dividing the NAV by the total number of issued ETF shares (units).

Net Asset Value = ETF Asset - liability and related costs

NAV per share = NAV / Total number of issued shares

Market Price
As ETFs are traded on the stock market on a real-time basis, the prices at which investors buy or sell ETFs are the market prices determined by the supply and demand of the ETF market.
Index Reference Price
The theoretical value of an ETF is expressed by multiplying the tracking index with a certain value, or a multiplier. It is made by considering smooth transaction and calculation convenience, and the multiplier varies depending on the ETF Product.
A dividend, which is paid to the stock included in the fund, is reflected to the NAV of the ETF as a dividend receivable on the ex-dividend day.