Comparative assessment of US and India’s exchange traded funds (ETFs): Performance evaluation of tailwinds and headwinds recommendations

Abstract

Long-term worldwide investment trends show that exchange-traded funds (ETFs) are becoming popular for passive investing. Nifty Bees established in 2001 was the first ETF to follow passive equities assets in India. Here, we will take a closer look at the Indian ETF market, as well as key policy considerations, and how to proceed. To put things in perspective, given the maturity of the US ETF market, the study compares the Indian ETF market to the US wherever possible on both a qualitative and quantitative basis. That’s how the paper’s laid out. After a quick introduction to ETFs and their history in India, the study looks in detail at how the market is structured and who the major players in the market in detail. These two sections outline the industry’s tailwinds and headwinds. There are certain policy ideas that might help the business grow further. The findings of the study stated that US ETF are more traded in volume in comparison to Indian ETF.

Subject Classification: [2010]:

• 90B50
• 00A99

Keywords:

• Exchange traded funds (ETFs)
• Investment
• Market
• Mutual funds
• Structure