I tried to google about to get the difference between ETF vs ETF FoF. but I am not able to understand properly .
Could someone please help me understand the below query.
what is the difference between ETF vs ETF FoF ?
is Fund of Fund different from ETF FoF ?
how tracking error will impact ETF price ? anyway we are buying or selling at market price , so what’s the impact ?
which is good for short term holding and long term holding?
as we are buying or seeling ETF at market price then why ETF’s are having NAV price ?
Please excuse if my questions are too basic and help me understand better.
Also please share some examples.
If possible read this, it explains the difference.
The only difference is when you invest in ETF, you must have a demat account and you buy or sell in real time during market hours. In case of a ETF FOF, it is AMC to whom you give the money and they will invest in ETFs.
For me personally I have invested in ETF - Nifty 50 and Nifty Next 50 and these are long term investments for me. The commission is low and I am invested in India top 100 companies.
I think you might be seeing AMC investing in ETF hence the NAV. For regular ETFs there is something called iNAV - iNAV stands for Intraday or Indicative Net Asset Value and is used to calculate the fair value of an ETF. Basically the fair value of the ETF. You can compare this against the market price.
Do please read about ETF from Varsity - This is quite comprehensive.
Hope the above helps. With regard to point 2, I am sure experts here will explain in more detail.
By explaining things to another, the person who is explaining will gain more knowledge. This is the beauty of this site, users can ask any question and none is basic. People explain it to their best of their ability and without being rude - There are one or two exceptions though - not worth spending time on them.