An investor buys ETF shares while the fund is trading at a premium to NAV. What follows?

1. A premium means the ETF's market price sits above the value of its underlying holdings, that is above NAV. 2. A retail investor buys in the secondary market at that market price, not at NAV. 3. Buying at a premium therefore means paying more than NAV for the same underlying value. 4. The premium is a potential cost, though a shift in premium or discount can also work in an investor's favour. 5. No refund exists, because the fund is not a party to a secondary market trade. 6. Repricing at the closing NAV is how a mutual fund order works, not an exchange trade. 7. Paying less than NAV would be the result of buying at a discount instead. _Source: US SEC Office of Investor Education and Advocacy, "Mutual Funds and ETFs: A Guide for Investors", section Transaction fees and costs for ETFs not reflected in the Fee Table_