Two ETFs tracking same index give different returns

[Bhuvan]

@nap

If I put a limit order to buy this ETF and if that is higher than the closing NAV declared by the AMC, will I be able to buy at the declared NAV after the close of trading?

Didn’t really understand the question. But the right way to buy an ETF is to use a limit order at the iNAVs shown on the AMCs sites.

@nap

In other words, assuming that market closes at the same NIFTY as right now, and ETF liquidity also does not improve, is it possible for me to buy the ETF at the underlying value?

You can in multiple of the creation units - which is about Rs 50 lakh. Not less than that.

@nap

Also I do not understand the liquidity part. Isn’t the fund house managing the ETF suppose to provide the liquidity?

AMC appoints market makers and if they see an opportunity when the price and NAVs are out of whack, they’ll step in arbitrage the price away. But maybe it’s harder during volatile markets.