If you have ever invested in an ETF, you may have noticed that it displays two values—a market price and a net asset value (NAV). Unlike other mutual funds, where investors transact only at the NAV, ETFs are bought and sold on stock exchanges throughout the day at market prices.
The NAV represents the per-unit value of the securities held by the ETF and is calculated by the fund house, while the market price is determined by demand and supply on the exchange. Although these values usually remain close, ETFs can trade at a premium (market price above NAV) or a discount (market price below NAV).
It is calculated by comparing the market price with the NAV and expressing the difference as a percentage of the NAV. A positive result means a premium, and a negative result means a discount.
Which ETFs are trading at the maximum discount?
| Fund Name | Price | NAV | Discount |
| Tata Nifty India Digital Exchange Traded Fund | 83.00 | 84.65 | -1.95% |
| Groww Nifty Realty ETF | 9.90 | 10.09 | -1.88% |
| Motilal Oswal Nifty Energy ETF | 38.92 | 39.53 | -1.54% |
| 360 ONE Silver ETF | 216.41 | 219.72 | -1.51% |
| Motilal Oswal Nifty Realty ETF | 88.81 | 90.15 | -1.49% |
| Zerodha Nifty Smallcap 100 ETF | 10.70 | 10.86 | -1.47% |
| HDFC Silver ETF | 210.66 | 213.65 | -1.40% |
*Source: NSE, Price as on 23 July and NAV as on 22 July, 2026
Bharath Rathore, Executive Director, Anand Rathi Wealth, said, “The widest discounts are largely seen in sectoral and silver ETFs, where lower liquidity, speculative trading and sharp movements in metal prices can temporarily widen the gap between market price and NAV. Such deviations are generally short-lived and should not be treated as investment opportunities.”
According to Rathore, almost all Nifty 50 ETFs are trading within a narrow 0.1% to 0.6% discount to NAV, reflecting efficient pricing. Small premiums or discounts are a normal feature of ETF trading and are usually caused by liquidity, bid-ask spreads, or temporary market factors.
Which ETFs are trading at a steep premium?
| Fund Name | Price | NAV | Premium |
| Mirae Asset NYSE FANG+ ETF | 197.77 | 163.46 | 20.99% |
| Mirae Asset Hang Seng TECH ETF | 23.33 | 19.30 | 20.88% |
| Motilal Oswal NASDAQ 100 ETF | 328.84 | 273.46 | 20.25% |
| Mirae Asset S&P 500 Top 50 ETF | 79.53 | 66.28 | 19.99% |
| Motilal Oswal NASDAQ Q 50 ETF | 142.42 | 118.71 | 19.97% |
*Source: NSE, Price as on 23 July and NAV as on 22 July, 2026
Rathore said most ETFs trading at the highest premiums are international ETFs, with some quoting 8% to 20% above their NAV.
He attributed these premiums to restrictions on fresh unit creation after overseas investment limits were exhausted, even as investor demand remained strong. He cautioned that investors buying such ETFs are paying significantly above the value of the underlying portfolio, and the premium could disappear once supply normalises.
He also suggested that international investments should ideally account for only 5% to 10% of an overall portfolio.
What should investors keep in mind?
Rathore said investors should make it a habit to compare an ETF’s market price with its NAV before investing.
“Investors should first understand whether the gap is driven by liquidity, market conditions, or any structural factor that can help them avoid an unnecessary cost at the time of investment. Ultimately, buying an ETF at a significant premium can reduce future returns even if the underlying assets perform well,” Rathore added.
Besides NAV, investors should also understand the indicative NAV (iNAV). Unlike the end-of-day NAV, iNAV is updated throughout market hours using the live prices of the ETF’s underlying securities. It provides a near real-time estimate of the ETF’s intrinsic value and helps investors assess whether the ETF is trading at a reasonable price.
Nilesh D Naik, Head of PhonePe Mutual Fund, Share.Market by PhonePe, said investors should compare an ETF’s market price with its indicative NAV (iNAV).
“While small deviations are normal, a gap of more than around 50 basis points may be a concern for buyers or sellers. From a buyer’s perspective, it is important to ensure that the purchase price does not significantly exceed the iNAV, while from a seller’s perspective, it is crucial to ensure the selling price is not substantially lower than the iNAV,” Naik added.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
About the Author
Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance.
She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram.
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