Discuss about ETFs and Index funds

[rajeshn2007]

Thank you.

I think,

If market is unstable and we are not in a position to invest in any shares,
We can easily short sell in falling market and make profit in falling or unstable market also.

am i correct? Can any one say, Why No. of Volumes in ETF are Very less as compared to Nifty Futures?

Yes, you can short sell and cover.
ETFs have not picked up in India, as in other countries.

 

[cavinothbabu]

Yes, you can short sell and cover.
ETFs have not picked up in India, as in other countries.

Ok. thanks rajesh.

 

[Class]

Hi Rajesh,
Delta Neutral to ETF's, sure are a wide ranging trader :thumb:

What are the issues with liquidity in ETF's? Any one tried selling or shorting Niftybees/juniorbees during the recent dip? Were there any problems getting your price in a timely fashion?

I understood that ETF's were broker/operator (?) managed to get around liquidity. Is that the case or are we at the mercy of wide margins and supply/demand?

All the best.

 

[cavinothbabu]

Hi Rajesh,
Delta Neutral to ETF's, sure are a wide ranging trader :thumb:

What are the issues with liquidity in ETF's? Any one tried selling or shorting Niftybees/juniorbees during the recent dip? Were there any problems getting your price in a timely fashion?

I understood that ETF's were broker/operator (?) managed to get around liquidity. Is that the case or are we at the mercy of wide margins and supply/demand?

All the best.

I think, The Price of the Nifty Bees are not based on the demand and supply.
1/10 th of Nifty index is called Nifty Bees. Like wise 1/10th of the Junior Nifty Index is called Junior Bees.

In this case, How will demand and supply affect the price of Nifty bees or Nifty Junior Bees?

So there is no risk from Operator/ Broker for price speculation.


Vinothbabu

 

[Class]

Hi Vinothbabu,
Thanks for your response.

I may be wrong, but I understood a company called Benchmark 'manage' the Niftybees and Juniorbees ETF's which track the top 50 and next 50 largest cap co's in India. Hence would Benchmark be the 'operator' or some other controlling force to enable liquidity when there is little?

Again my perception is that these ETF's 'outperform' the actual index they are based on. Don't know if there is any data to support that.

All the best,

 

[cavinothbabu]

Yes Class. You are correct. That is Bench mark is a mutual fund company. I thought that " Operator means any person who is rising the price or reducing the price of a particular company by buying or selling large quantity of that shares"

My view was wrong.

Sorry.

Vinothbabu.

 

[rajeshn2007]

Hi Rajesh,
Delta Neutral to ETF's, sure are a wide ranging trader :thumb:

What are the issues with liquidity in ETF's? Any one tried selling or shorting Niftybees/juniorbees during the recent dip? Were there any problems getting your price in a timely fashion?

I understood that ETF's were broker/operator (?) managed to get around liquidity. Is that the case or are we at the mercy of wide margins and supply/demand?

All the best.

Hi Vinothbabu,
Thanks for your response.

I may be wrong, but I understood a company called Benchmark 'manage' the Niftybees and Juniorbees ETF's which track the top 50 and next 50 largest cap co's in India. Hence would Benchmark be the 'operator' or some other controlling force to enable liquidity when there is little?

Again my perception is that these ETF's 'outperform' the actual index they are based on. Don't know if there is any data to support that.

All the best,

Hi Class,
volumes are around 1 lak/day. not much prob .
Benchmark is the mutual fund which has launched these products, so operator driven-stuff.
They just replicate the nifty index - 1/10th of the nifty.
some outperformance due to dividends declared by the cos.
you cane details about it here

 

[simranlalia1]

Benchmark is the company who conceptualized Gold ETFs ...right??

 

[rajeshn2007]

Benchmark is the company who conceptualized Gold ETFs ...right??

Yes, Benchmark is the first asset management company in India with a focus on indexing and in creating innovative products.

 

[AW10]

Concept of ETFs is not the property of Benchmark. They are fundhouse having few ETF based. In global market, SPDRs (part of State Street), dbxtracker (of Deutsche Bank) and iShare (part of barclays which they sold to private equity firm CVC) are three such players.
If you look at their ETF products, then benchmark is not even new born baby.
But yes, they have started this trend in India and I see them getting the advantage of being the first in this segment. If they can keep up with the competition, then they are in for good growth.. else probably iShare/ SPDRs may enter Indian Mkt and either acquire them or kill them.

Happy ETF trading