ETF premium
By Jude Wallis
An ETF premium is the gap between an ETF's exchange price and its net asset value, expressed as a percent of NAV. Price above NAV is a premium. Price below NAV is a discount.
Keep reading
Creation and redemption tend to keep that gap contained, but they do not pin price to NAV every minute. A stale NAV against a live exchange price can look like a premium when the inputs are from different clocks.
How fund NAV works owns both identities. The ETF premium calculator is the percent gap. How ETFs work is the wrapper.