LIQUIDETF - DSP Blackrock ETF

#1

@nithin @siva

Hello Nithin & Siva:

Does Zerodha allow pledging of LIQUIDETF for F&O trading margins?

#2

Currently we accept only Liquidbees. But all these LiquidETFs are identical, doesn’t make a difference., you can buy Liquidbees and pledge it.

#3

Thanks Bhuvanesh.

There is a subtle difference on both these ETF, Reliance ETF Liquid BeES expense ratio is 0.65% whereas the expense ratio for DSP Liquid ETF is 0.61%, hence in the long run I as an investor will save more.

Do you have any timeline to allow DSP Blackrock ETF as part of securities for pledging?

Currently Reliance ETF Liquid BeEs is the sole monopoly in this space with an AUM of 2212 Cr whereas DSP has an AUM of 100 Cr… as an investor it is better to have choice.

#4

Unless you are pledging these ETFs for years, this difference in expense will hardly make a dent. AUM isn’t a consideration in this given how the ETF works.

Allowing pledging of LIQUIDETF is on our list of things to do but can’t comment on the timelines.

#5

Thanks Bhuvanesh.