What is an ETF
ETF is an exchange-traded fund traded in stocks and bonds.ETF is convenient to trade in a large number of investments at once. It’s also a type of exchange-traded fund. Allows diversifying investment.
How ETF works
1)ETF exchange traded the same as stock bonds and derivatives, it’s listed on stock exchanges such as NSE and BSE
2) ETFs fluctuate daily; investors can buy and sell ETFs on normal trading days.
3) The fund manager of select stock bond or any underlying assets that the ETF will track generally fund Provider create a fund to track the performance of these stocks.
4) ETF provides a diversified facility; it’s a more flexible investment option
Why choose ETF
The question is this: With lots of investment options in the market then, why an investor will choose ETF? What qualities make it different?
1) Cost is low -> Generally, we can see ETFs have a lower expense ratio other than mutual funds.
2) Transparency- ETF is more transparent. It allows investors to look at underlying assets.
3) Equity diversity- ETF is a flexible and diversified investment option
4) Trading thoroughly- It provides facility to trade throughout the day
Top ETF in 2025 India1)Equity vanieck digital transformation ETF( DAPP)
2)SPDR Bloomberg engaging markets lower fund ET
3)Fixed income ETF-SPDR Bloomberg convertible securities ETF( CWB) 1-month return.
4)Commodity ETF-abrdn physical platinum shares ETF(PPLT) 1month return-14.3%
5)Currency ETF- Invesco currency shares Australian dollar trust 1-month performance 9.17%.
Top ETF in the USA1) Spdr S&P 500 ETF
2)shares core S&P 500
3)Vanguard S&P 500
4)Vanguard total stock market