iNAV provides a real-time look at an ETF's asset value versus the typical end-of-the-market day NAV calculation. The iNAV is reported every 15 seconds by fund companies to give traders and investors a clearer understanding of whether an ETF’s price is trading at a premium or discount to its underlying assets.
A new SEC proposal is examining the possibility of reducing iNAV reporting to just once a day instead of every 15 seconds. Some fund providers claim the changes are justified because reporting requirements are burdensome; plus, real-time NAV calculations are rarely accurate.
Ron DeLegge is founder and chief portfolio strategist at ETFguide.