Comments on: Introduction to ETF’s , what are ETF ? http://www.jagoinvestor.com/2008/08/what-are-etfs-etfs-are-basket-of.html Financial Planning , Insurance , Mutual Funds , Investments Sat, 11 Feb 2012 14:23:57 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Manish Chauhanhttp://www.jagoinvestor.com/2008/08/what-are-etfs-etfs-are-basket-of.html#comment-25429 Manish Chauhan Tue, 26 Jul 2011 15:12:14 +0000 http://www.jagoinvestor.com/?p=38#comment-25429 Better ask on our forum : http://www.jagoinvestor.com/forum/ Better ask on our forum : http://www.jagoinvestor.com/forum/

]]> By: sunnyhttp://www.jagoinvestor.com/2008/08/what-are-etfs-etfs-are-basket-of.html#comment-25403 sunny Tue, 26 Jul 2011 07:15:06 +0000 http://www.jagoinvestor.com/?p=38#comment-25403 As AP buys physical Gold the price of Gold will increase. Similarly as he sells fresh ETF units in the market, the supply of ETFs will increase. These two actions will lead to increase in Gold prices and reduction in ETF prices, thereby removing the anomaly in the prices of the ETF units and the underlying. Similarly, if ETF prices fall way below the price of Gold, APs will buy ETF units cheap and redeem them in Creation Unit lot size. Such an action will reduce supply of ETFs from the market and increase the supply of physical Gold (Gold held with Custodian will come into the market). Both these actions will help align prices of underlying and ETF units as ETF prices will increase due to buying (and subsequent cutting of supply) and price of physical Gold will reduce due to fresh supply in the market. Can ANYONE explain this. As AP buys physical Gold the price of Gold will increase. Similarly as he sells fresh ETF units in the market, the supply of ETFs will increase. These two actions will lead to increase in Gold prices and reduction in ETF prices, thereby removing the anomaly in the prices of the ETF units and the underlying.

Similarly, if ETF prices fall way below the price of Gold, APs will buy ETF units cheap and redeem them in Creation Unit lot size. Such an action will reduce supply of ETFs from the market and increase the supply of physical Gold (Gold held with Custodian will come into the market). Both these actions will help align prices of underlying and ETF units as ETF prices will increase due to
buying (and subsequent cutting of supply) and price of physical Gold will reduce due to fresh supply in the market.

Can ANYONE explain this.

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2008/08/what-are-etfs-etfs-are-basket-of.html#comment-13994 Manish Chauhan Mon, 20 Sep 2010 07:00:25 +0000 http://www.jagoinvestor.com/?p=38#comment-13994 Raju Will soon .. Also I will come up with a new article . manish Raju

Will soon .. Also I will come up with a new article .

manish

]]> By: rajuhttp://www.jagoinvestor.com/2008/08/what-are-etfs-etfs-are-basket-of.html#comment-13993 raju Mon, 20 Sep 2010 06:57:32 +0000 http://www.jagoinvestor.com/?p=38#comment-13993 Hi Manish, Can you update this article with recent additional funds as it was posted in 2008 and the information availability of individual ETFs. regards, raju Hi Manish,

Can you update this article with recent additional funds as it was posted in 2008 and the information availability of individual ETFs.

regards,
raju

]]> By: prabeeshhttp://www.jagoinvestor.com/2008/08/what-are-etfs-etfs-are-basket-of.html#comment-13760 prabeesh Mon, 13 Sep 2010 17:08:58 +0000 http://www.jagoinvestor.com/?p=38#comment-13760 posting for updates posting for updates

]]> By: prabeeshhttp://www.jagoinvestor.com/2008/08/what-are-etfs-etfs-are-basket-of.html#comment-13759 prabeesh Mon, 13 Sep 2010 17:08:23 +0000 http://www.jagoinvestor.com/?p=38#comment-13759 Manish thanks for the intro to ETF..with the intial load gone for MF is ETF equal to MF now.. and i see in most forum people saying that agent(or brokers) generally dont sell ETF..why so they dont get anything? How will you compare ETF and MF? Manish

thanks for the intro to ETF..with the intial load gone for MF is ETF equal to MF now.. and i see in most forum people saying that agent(or brokers) generally dont sell ETF..why so they dont get anything?

How will you compare ETF and MF?

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2008/08/what-are-etfs-etfs-are-basket-of.html#comment-13313 Manish Chauhan Sat, 04 Sep 2010 13:19:42 +0000 http://www.jagoinvestor.com/?p=38#comment-13313 Balbir ETF's are nothing but a kind of share , which you trade in market , you its bought and sold in market , so just like a share , when you buy the ETF and pay money , the money goes to a random person like you who sold his ETF to you . Manish Balbir

ETF’s are nothing but a kind of share , which you trade in market , you its bought and sold in market , so just like a share , when you buy the ETF and pay money , the money goes to a random person like you who sold his ETF to you .

Manish

]]> By: Balbirhttp://www.jagoinvestor.com/2008/08/what-are-etfs-etfs-are-basket-of.html#comment-13285 Balbir Fri, 03 Sep 2010 11:19:01 +0000 http://www.jagoinvestor.com/?p=38#comment-13285 I am wondering about the cash flow of the ETF. I would like to know if I buy the ETF then who keeps the money I paid? BSE/NSE? In terms of normal stock if I buy a stock then money goes to seller and in term of Mutual fund the SIP premium goes to AMC. What happens in case of ETF, who keeps the money? Just a random question :-) I am wondering about the cash flow of the ETF. I would like to know if I buy the ETF then who keeps the money I paid? BSE/NSE?

In terms of normal stock if I buy a stock then money goes to seller and in term of Mutual fund the SIP premium goes to AMC. What happens in case of ETF, who keeps the money?

Just a random question :-)

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2008/08/what-are-etfs-etfs-are-basket-of.html#comment-9924 Manish Chauhan Fri, 28 May 2010 02:49:44 +0000 http://www.jagoinvestor.com/?p=38#comment-9924 Jitesh Nope , it should be 10% with indexation and 20% without indexation , I made mistake it seems . Manish Jitesh

Nope , it should be 10% with indexation and 20% without indexation , I made mistake it seems .

Manish

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