Monday, February 21, 2011

What are Exchange Traded Funds (ETFs)?

Exchange Traded Funds are essentially Index Funds that are listed and traded on exchanges like stocks. Until the development of ETFs, this was not possible before. Globally, ETFs have opened a whole new panorama of investment opportunities to Retail as well as Institutional Money Managers. They enable investors to gain broad exposure to entire stock markets in different Countries and specific sectors with relative ease, on a real-time basis and at a lower cost than many other forms of investing.

An ETF is a basket of stocks that reflects the composition of an Index, like S&P CNX Nifty or BSE Sensex. The ETFs trading value is based on the net asset value of the underlying stocks that it represents. Think of it as a Mutual Fund that you can buy and sell in real-time at a price that change throughout the day.

                                                 PERFORMANCE OF EXCHANGE TRADED FUNDS
SchemesLatest Price % ChangeAsset SizeNAVReturns in % (as on Feb 21, 2011)
    (Rs. cr.)(Rs./Unit)1wk1mth3mth6mth1yr2yr3yr  
Kotak PSU Bank ETF449.870.3665.73446.551.95.9-11.1-2.642.967.912.9
PSU Bank BeES438.001.509.20432.291.95.9-11.1-2.642.765.111.7
Bank BeES1,108.49-0.0046.601,099.721.43.1-9.3-1.729.565.56.2
Reliance Banking ETF1,050.00-0.2814.551,119.861.33.0-9.3-1.729.365.2--
Reliance Gold ETF1,939.350.33340.611,932.931.
Gold BeES1,999.200.181,633.871,987.781.
SBI Gold Exchange Traded Fund2,028.750.43175.932,
Quantum Gold Fund994.000.6026.63988.411.
Kotak Gold ETF1,998.800.43229.931,986.461.
UTI Gold Exchange Traded Fund2,004.050.38449.401,987.
ICICI Pru SPIcE Plan186.000.001.12190.71---4.0-6.5-0.713.541.41.0
Nifty BeES559.701.01570.04551.510.1-4.0-7.3-1.313.539.81.1
Kotak Nifty ETF555.770.5013.46549.79---4.1-7.3-1.413.5----
Kotak Sensex ETF185.00-0.3417.15185.11---4.0-7.0-1.213.342.8--
Junior BeES109.020.51127.44108.000.1-4.5-14.8-
Shariah BeES123.500.490.95122.18-0.3-5.5-6.0-0.96.8----
Hang Seng BeES1,377.28-1.2662.471,395.391.5-4.0-0.88.6------
ICICI Pru Gold ETF2,050.700.3687.352,048.461.
HDFC Gold Exchange Traded Fund2,034.000.15300.662,031.481.
Liquid BeES999.990.00477.151,000.00--------------
Religare Gold ETF2,070.000.0038.962,042.651.
* Returns over 1 year are annualised.


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