What is the difference between NAV and AUM?

NAV and AUM are both important financial metrics, but they measure different aspects of an investment product.

NAV stands for Net Asset Value, which is the value of a mutual fund or exchange-traded fund’s (ETF) assets minus its liabilities, divided by the number of outstanding shares. In other words, NAV is the per-share value of the fund’s holdings, calculated daily. Investors use NAV to determine the price at which they can buy or sell shares of the fund.

On the other hand, AUM stands for Asset Under Management, which is the total value of assets that a financial institution manages on behalf of its clients. AUM includes all the assets that a financial institution manages, not just mutual funds or ETFs. AUM is used to evaluate the size and growth of a financial institution’s business and is often used as a key performance indicator (KPI) in the financial industry.

In summary, NAV is a measure of the value of a specific investment product, while AUM is a measure of the total value of all the assets a financial institution manages.