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.