appTracking Nifty 50 Index
Expense RatioETFs charge their shareholders an expense ratio to cover the fund’s operating expenses, which is expressed as a percentage of the fund’s average net assets. This directly reduces the fund’s returns to its shareholders, and, therefore, the value of the investment. Lower is always better!
Less expense ratio implies better returns over the long term
Tracking ErrorTracking error is the difference between the performance of the ETF and that of the underlying benchmark it's tracking. It's an important metric for investors who want to replicate an index's performance by investing in the ETF. The lower the tracking error, the better is the ETF's performance aligned with the investor's expectations
ETF has been able to closely match its benchmark's returns
Return vs FD RatesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If the ETFs price return is lower than this rate, investors are better off investing the amount in a FD
ETF has been generating better price return than bank FD
Entry PointHigh demand for an ETF increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the ETF
Good time to consider, as ETF is not in overbought zone
News & Opinions
Tech View: Nifty shows small body candle formation. How should one trade on Tuesday?
4 hours ago•Economic Times
Share Market Highlights 9 December 2024: Markets slip amid mixed sectoral performance, Nifty and Sensex down slightly
5 hours ago•The Hindu Businessline
Gainers & Losers: Godrej Consumer, Paytm among 5 stocks that moved most on Monday
5 hours ago•Economic Times
Markets settle lower amid selling in blue-chip stocks
5 hours ago•The Hindu
Share market update: Most active stocks of the day in terms of traded value
5 hours ago•Economic Times
Share market update: Most active stocks in today’s market in terms of volume
5 hours ago•Economic Times
Sensex falls! But these stocks gained over 10% on BSE
5 hours ago•Economic Times
NAVThe net asset value (NAV) of an ETF is based on the current prices of the stocks/assets in the fund and an actual accounting of the total cash in the fund at the time of calculation. Market price can be different from real time NAV due to late market activity and both tend to converge periodically. A market price close to real time NAV is much better for investment!
Current price is far from the real time NAV