A comprehensive comparison of Exchange Traded Funds in India
The Indian ETF market has grown significantly in recent years, offering investors a wide range of options across different asset classes and investment strategies.
Track major indices like Nifty 50, Sensex, and Nifty Next 50. Generally have the lowest expense ratios and tracking errors.
Focus on specific sectors like Banking, IT, PSU. Offer targeted exposure to high-growth sectors of the Indian economy.
Include Liquid ETFs and G-Sec ETFs. Provide stable returns with lower volatility compared to equity ETFs.
Track precious metals like Gold and Silver. Serve as effective inflation hedges and portfolio diversifiers.
Follow specific investment factors like Momentum and Low Volatility. Offer strategic exposure to specific market factors.
Provide exposure to international markets like S&P 500, NASDAQ, Hang Seng. Enable geographical diversification.
Expense ratio is a critical factor in ETF selection as it directly impacts returns. Lower expense ratios are generally preferable as they reduce the cost of investment.
Category | Minimum | Median | Maximum |
---|---|---|---|
Index | 0.03% | 0.17% | 0.41% |
Sector | 0.07% | 0.22% | 0.39% |
Debt | 0.25% | 0.30% | 0.69% |
Bullion | 0.50% | 0.56% | 0.82% |
Factor | 0.30% | 0.39% | 0.41% |
Global | 0.58% | 0.62% | 0.93% |
Historical returns across different time periods provide insights into ETF performance consistency.
Category | 1-Year | 3-Year | 5-Year |
---|---|---|---|
Index | 1.2% | 14.5% | 16.2% |
Sector | -3.1% | 19.2% | 21.7% |
Debt | 5.2% | 5.7% | 4.0% |
Bullion | 31.5% | 15.3% | 12.8% |
Factor | -5.6% | 13.6% | 17.9% |
Global | 40.3% | 17.2% | 13.8% |
Understanding risk metrics helps investors assess the volatility and market sensitivity of ETFs.
Category | Avg. Standard Deviation | Avg. Beta | Avg. Tracking Error |
---|---|---|---|
Index | 13.8 | 0.98 | 0.03% |
Sector | 17.2 | 0.99 | 0.07% |
Debt | 14.3 | 0.84 | 0.03% |
Bullion | 16.5 | 0.92 | 0.17% |
Factor | 17.9 | 0.93 | 0.30% |
Global | 15.7 | 0.96 | 0.21% |
Based on our comprehensive analysis, here are some of the top-performing ETFs across different categories:
Based on different investor profiles and objectives, here are our recommendations:
Focus on capital preservation with stable returns
Balance between growth and stability
Focus on high growth potential with higher risk tolerance