List of all Indian Exchange Traded Funds (ETFs)

[ShubhS9]

@MrSuperShetty

How are stocks in a ETF decided like nifty it ETF. Does nse/bse decide stocks in a ETF

These decisions are taken by AMC (Asset Management Company) and their fund managers.

ETF is based on a theme, for example take Nifty Bees ETF, here this ETF’s objective is to achieve returns closely corresponding to Nifty 50 Index. Same goes for all other ETF’s.

You should give this post a read, which explains how ETF’s function:

Is investing in ETFs a good option for a long term? Say NIFTY BEES? Are they liquid enough?

The way ETFs are usually structured is by setting up a trust. This trust buys and sells the underlying securities from the open market, as per its mandate. So for instance, NIFTYBEES has the mandate of holding companies in the NIFTY, as per their weightage in the index. When you buy a unit of an ETF that is listed on the market, you are essentially buying a share of ownership of all the assets held by this trust. The market price of the ETF at any given time might be different from the NAV (ne…