Other Types Of ETFs.
The exchange-traded funds available on exchanges vary from country to country. Many of the ETFs listed below are available exclusively on that nation's primary stock exchange and cannot be purchased on a foreign stock exchange. This is a list of notable Indian Exchange Traded funds, or ETFs. Reliance Gold Exchange Traded Scheme (NSE: GOLDBEES) Reliance ETF Liquid BeES (formerly Goldman Sachs Liquid Exchange Traded Scheme) Dividend Reinvestment (NSE: LIQUIDBEES).
Each Direxion Fund share price is calculated as of the close of regular trading, usually as of 4: Each fund seeks to meet its investment objective relative to the value of the target index or benchmark as of 4: Shares of Direxion Shares are bought and sold at market price not NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Some performance results reflect expense subsidies and waivers in effect during certain periods shown.
Absent these waivers, results would have been less favorable. Tax-adjusted returns and tax cost ratio are estimates of the impact taxes have had on a fund. We assume the highest tax rate in calculating these figures. These returns follow the SEC guidelines for calculating returns before sale of shares. To determine this figure, all income and short-term capital gains distributions are taxed at the maximum federal rate at the time of distribution.
The above chart shows the average assets under management for gold and other ETFs for four year period from Oct 14 The above chart shows the top five assets management companies of gold ETF as on October There are 12 asset management companies operating in this space. The above chart shows the top five assets management companies of other ETF as on October There are 14 asset management companies operating in this space.
There has slow growth in ETFs when compared to the actively managed equity funds. Reasons for the same are:. Distributors, as a result, are averse to sell these schemes. There needs to be a change in the mindset of investors. ETFs should be compared to index funds or large cap funds. Index funds are similar to ETFs in a sense that they try to replicate the performance of an Index but work like a mutual fund, they are not traded on the exchange.
Expense ratios of these funds are low as compared to actively managed mutual funds as they buy stocks that comprise the index in the same proportion and fund manager intervention is minimal. Expenses ratios of these funds are in the range of 0. Large cap funds benchmark their performance to indices that comprise of large companies. The below points have been taken into consideration. ETFs have the lowest expense ratios amongst all categories, expense ratios are in the range of 0.
Expense ratios in the index funds space range between 0. It is always advisable for investors to look at performance of their investments over longer periods of time. Observations from the 3YR and 5YR returns are as below:. Over a three year period an investor would have been better of investing in an ETF than an index fund.
Index funds also have higher expense ratios when compared to ETFs. Returns for both these funds have been The index return has been Another important measure of analysing the performance of an ETF is the tracking difference. Tracking difference is discrepancy between ETF performance and Index performance. There are a lot of factors that result in an ETF having a tracking difference. Some of the Factors which create a tracking difference are total expense ratio TER , the lower the TER the better and transaction and rebalancing costs, lower the rebalancing the better.
Tracking difference for all the funds is positive, which is good. Investors need to look for nil or positive tracking difference and the stability of the same. ETFs are a good product for investors across all segments — new and seasoned. It is a good starting point for investors who are new to the world of equities.
Investors enjoy flexibility of stocks and diversification of a fund while purchasing ETFs. There is a long run way for ETFs in India. Some of the factors that will help growth of ETFs in India are.
Government may use the same route going forward. Alpha is the excess return of an investment relative to the return of a benchmark. Indian ETF market is still developing, hence opportunities for generating alpha are available. Investors who are willing to take a few risks can do well by buying good quality large cap, multicap and mid cap funds.
However one needs to be sure of what one is getting into. As the market matures and it is difficult to generate alpha as pointed by the HDFC securities study above more investors will flock towards ETFs. However, Fintapp does not guarantee or warrant the accuracy or completeness of the information. The information is not intended to be used as the primary base for investment decisions. Team Fintapp may or may not have positions in the stocks discussed.
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Expense ratios in the index funds space range between 0. What is a cash flow statement?
Record Date — Date by which a shareholder must officially own shares in order to be entitled to a dividend.