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Nuvama Partners

Exchange Traded Funds

Blend of mutual fund diversification with the ease of equity trading!
Benefits of investing
in ETFs
Diversified Portfolio
Access to a ready-made diversified portfolio
Suitable For Passive Investors
Ease of Trading
Lower expense ratios

Benefits of ETF

Diversification and suitability Simple And Economical
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Access to diversified portfolio
High transparency as ETFs reveals daily holdings

Types of ETFs

Equity Funds
Equity FundsEquity ETF represent companies investing in shares and other forms of equity of various companies.
Bond ETF
Bond ETFThese includes corporate and government bonds and local and state bonds, which are known as municipal bonds. Bond ETFs are “Fixed Income Funds” that track low-liquidity investment and are not actively traded in secondary markets.
Currency ETF
Currency ETFA currency ETF is a pooled investment that provides investors with exposure to foreign exchange (forex) or currencies.

Got Questions? We’ve got you covered! - FAQs

An ETF is a basket of securities that you can buy or sell through a brokerage firm on a stock exchange. ETFs are offered on virtually every conceivable asset class from traditional investments to so-called alternative assets like commodities or currencies.

The main difference between an ETF and an index fund is ETFs can be traded (bought and sold) during the day and index funds can only be traded at the set price point at the end of the trading day.

Tracking error is the divergence between the price behaviour of a position or a portfolio and the price behaviour of a benchmark. Tracking error is reported as a standard deviation percentage difference, which reports the difference between the return an investor receives and that of the benchmark they were attempting to imitate.

  • Access to many stocks across various industries.
  • Low expense ratios and fewer broker commissions.
  • Risk management through diversification.
  • ETF exist that focus on targeted industries.

Pros

  • Access to many stocks across various industries.
  • Low expense ratios and fewer broker commissions.
  • Risk management through diversification.
  • ETF exist that focus on targeted industries.

Cons

  • Actively managed ETF have higher fees.
  • Single-industry-focused ETF limit diversification.
  • Lack of liquidity hinders transactions.

ETF with very low AUM or low daily trading averages tend to incur higher trading costs due to liquidity barriers. This is an important factor to consider when comparing funds that may otherwise be similar in strategy or portfolio content.

Unlike mutual funds, you can't always buy an ETF with zero transaction costs. Like any stock, an ETF has a spread, which can vary from one penny to many dollars. Spreads can vary over time as well, being small one day and wide the next. What's worse, an ETF's liquidity can be superficial: The ETF may trade one penny wide for the first 100 shares, but to sell 10,000 shares quickly, you might have to pay a quarter spread.

Trading costs can quickly eat into your returns. Understand an ETF's liquidity before you buy, and always trade with limit orders.

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