Thank you.
NAV (net asset value) is calculated by taking the total value of all the securities held by the ETF, subtracting any liabilities, and then dividing by the number of shares outstanding. It can be interpretted similarly to Price/Book ratio for a stock. When an ETF is trading above NAV, as is the case for HSAV, investors would be paying slightly more per share than the net value of the Fund's assets. When shares are at a discount to NAV, investors are paying less than the net value of the Funds assets per share. NAV can be a good way to measure the of the value of an investment with most ETFs trade very close to their NAV. A slight premium to NAV as is the case for HSAV exists primarily because, even though it is a 'cash' fund, the fund pays no distributions. Thus, it can be more tax-advantageous to certain taxpayers, pushing tax to a capital transaction rather than interest. Horizons has stopped issuing new units of the fund, so investors need to buy into the market and thus are willing to pay a premium for this tax benefit. The premium will vary, and one needs to watch for it if selling, but we do see the tax benefit more than making up for the small loss if an investor ends up selling at a lower premium than when they bought.