Different Types of ETFs

1. Equity ETFs

  • What They Track: Broad indices (Nifty 50, Sensex), sector-specific indices (IT, Pharma), or market caps.
  • Examples:
    • Nippon India ETF Nifty BeES.
    • ICICI Prudential Sensex ETF.

2. Gold ETFs

  • What They Track: Domestic gold prices; units are backed by physical gold.
  • Why Invest: Hedge against inflation and currency risks.
  • Examples:
    • SBI ETF Gold.
    • Kotak Gold ETF.

3. Debt ETFs

  • What They Track: Government securities, bonds, or fixed-income instruments.
  • Why Invest: Ideal for risk-averse investors seeking consistent returns.
  • Examples:
    • Bharat Bond ETF (maturity options of 2025, 2031).
    • Edelweiss ETF G-Sec.

4. International ETFs

  • What They Track: Global indices like S&P 500 or Nasdaq, offering international diversification.
  • Examples:
    • Motilal Oswal Nasdaq 100 ETF.
    • Mirae Asset NYSE FANG+ ETF.

5. Thematic ETFs

  • What They Track: Specific themes or sectors such as renewable energy, healthcare, or technology.
  • Examples:
    • Aditya Birla Sun Life Banking ETF.
    • Reliance Pharma ETF.