Stock Price vs. NAVPU: Understanding the Key Differences for Investors

Navigating the Philippine financial market means getting familiar with two primary valuation figures: stock prices and NAVPU. While both measure investment value, they operate under entirely different mechanics and serve distinct investor goals. Knowing how they differ is essential for building a confident, well-rounded portfolio.

​Core Comparison: Live Market vs. End-of-Day Calculation

• Stock Price (Live Market): This is the live, market-driven value of a single share traded on the Philippine Stock Exchange (PSE). It fluctuates throughout the trading day based on real-time supply, demand, company earnings, and market sentiment.
• NAVPU or Net Asset Value Per Unit (End-of-Day Calculation): This is the valuation metric for Unit Investment Trust Funds (UITFs). Rather than being negotiated by buyers and sellers, it is computed daily by dividing the fund’s total net assets by its outstanding units. You buy or redeem fund units based on this single, end-of-day calculated price.

Why the Distinction Matters
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• Trading vs. Pooling: Stocks are individual equities that require active timing and monitoring to capture rapid price swings. UITFs pool your money with other investors, letting professional managers handle a diversified asset portfolio.
• Risk and Reward: Individual stocks offer higher return potential paired with higher volatility. UITFs focus on gradual, long-term growth through diversification, making them ideal for steady wealth building.
• Strategic Fit: Neither metric is inherently better. Stocks suit investors comfortable with active trading, while UITFs suit those looking for guided, patient, long-term growth.

Disclaimer: UITFs are not deposit products, are not insured by the PDIC, and carry no guarantees from Metrobank or its affiliates. Principal values and returns will fluctuate, and investment losses can occur.