Exchange Traded Funds or ETFs track various indexes. They are broadly classified under the following categories.
Equity ETFs
These are designed to offer exposure to equity markets. They can be classified further as:
- - Market based: Designed to track a particular index like Sensex or Nifty
- - Sector and industry based: Designed to offer exposure to specific industries such as IT, pharma, banks and more.
- - Market Cap based: These could focus on large-cap, mid-cap or small-cap growth
Debt ETFs
These are designed to offer exposure to different types of bonds – Govt. treasury, corporate, international, high-yield etc.
Commodity ETFs
These are designed to track prices of commodities such as gold, precious metals, natural resources etc.
Actively managed ETFs/Smart Beta
These ETFs are based on Smart Beta and combine both active and passive style of investing.
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