In two months, the Sensex ETF has given a return of 7.23 per cent as the corpus grew by a modest $21.58. The increased trading in the India-based ETFs in Singapore and Hong Kong is significant considering that the products are not available for US and NRI investors.
ETFs are baskets of securities that are traded like individual stocks on an exchange. Unlike regular open-end mutual funds, ETFs can be bought and sold throughout the trading day like any stock.
Foreign investors would like to invest in the Indian-stock tracker ETFs as the ceiling on FII investment in most key sectors have touched the permitted levels.
