An ETF's daily Net Asset Value (NAV) is calculated by taking the most recent closing prices of all its holdings on a weighted basis. Then, any cash the ETF holds is added to these closing prices. From this total, any liabilities on the ETF's balance sheet are subtracted. The resulting amount is then divided by the total number of ETF shares outstanding. This gives the NAV per share, which shows the value of one share of the ETF.