Answer:
Net Asset Value of ETF = $99.75
Explanation:
Net asset value of an ETF
- The net asset value of an ETF represents the value of each share’s portion of the fund’s underlying assets and cash at the end of the trading day.
- ETFs calculate the NAV at 4:00 p.m. Eastern Time after the markets close.
- The NAV is used to compare the performance of different funds, as well as for accounting purposes.
- The ETF also releases its current daily holdings, amount of cash, outstanding shares, and accrued dividends, if applicable.
- For investors, ETFs have the advantage of being more transparent. Mutual funds and closed-end funds do not have to disclose their daily holdings.
- In fact, mutual funds usually disclose their holdings only quarterly.
Calculation
Market Value per share = $100
Expense Ratio = 0.25%
Net Asset Value = Market Value per share * (1 - Expense Ratio)
Net Asset Value = $100 * (1 - 0.0025)
Net Asset Value = $100 * 0.9975
Net Asset Value = $99.75
