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[vasa1]

.... However, an ETF like Nifty BeES will never trade at a substantial premium or discount to its fair value as market makers will always step in to extract the arbitrage. Hence, the best thing about ETFs is that you will always buy and sell it at close to its fair value.

1. This is a very general statement and will depend on what one means by substantial.

2. Are market makers official or unofficial? Are they identified as such?

3. Is an arbitrageur the same as a market maker, technically speaking?

4. In my experience, this is mostly not true. One can just look at the intraday charts of an ETF to see how many trades have been done. The NIFTYBEES is currently the most liquid equity-related ETF and so trades are frequent and often close to "fair value". The same doesn't apply to less liquid ETFs.

5. I wish we could have official information from ETF sponsors in the thread allotted for the purpose here.

 

[C.C]

Is it good to buy Gold ETF's ?

 

[ketan4778]

Hi,

i checked the price of RELGold and kotak gold, why the rates are different
if they are trading on gold the values should be same, right?

Can you please tell me why the difference is and if i am selling it will i get the same rate of the gold which is running in the market.

regards
Ketan

Hey guys,

If you have any query related to ETFs (exchange traded funds) and Indexing which you want to ask, you can ask right here and i will surely get back to you in the fastest way possible

I am really excited about spreading the knowledge which i have gathered on ETFs and Indexing. So if you have anything to ask on it just put it here instead of creating threads for the same.

Shoot it :thumb: