Exchange Traded Fund
In this blog, we will briefly discuss about the ETFs and their different types with a comparison to Mutual Funds.
What are ETFs?
- They are created to replicate an Index.
- ETFs are listed and traded on the Stock exchanges.
- There is option of putting limit orders.
- We get the Delivery of ETFs in our Demat account.
Types of ETFs
- Index ETF — Track the benchmark like NIFTY & SENSEX.
- Gold ETF — Tracks precious metals like gold, silver, etc.
- Sector ETF — Invests in stocks specifically in 1 sector.
- Bond ETF — Invests in bonds like treasury bills, corp, etc.
- Currency ETF — Gives exposure to foreign exchange (forex).
- Global ETF — Invests in global stocks like Apple, Tesla, etc.
ETFs vs Mutual Fund
| Features | ETFs | Mutual Funds |
| Flexibility | These can be bought and sold during trading hours on stock exchanges. | It involves placing a request with the Mutual Fund house and generally takes a longer time. |
| NAV | Bought and sold at real-time NAV | Bought and sold at closing NAV |
| Lock-in period and Exit load | Not Applicable | Applicable |
| Expense Ratio | Low Expense ratio | Relatively higher as they are usually actively managed |
Few ETFs
- Nippon India Etf Nifty Bank Bees
- Nippon India Nifty 50 Bees Etf
- Icici Prudential S&P Bse Sensex Etf
- HDFC S&P BSE Sensex ETF
- Nippon India ETF Nifty Next 50 Junior BeES
- Nippon India Nifty Infrastructure Bees Etf
- Motilal Oswal NASDAQ 100 ETF
- Mirae Asset NYSE FANG+ ETF