YieldDesk
Glossary · Funds

NAV erosion

Definition

A lasting decline in a fund's net asset value when distributions exceed what the strategy earns. On covered-call ETF pages, Yield Sustainability measures it for each fund over the last 12 months, and NAV Half-Life or Distribution Runway states the pace. The NAV Erosion calculator projects the effect on a position over time.

Definitions describe how YieldDesk reads the term. Nothing on this page is investment advice or a recommendation to buy, sell or hold.

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