Glossary
ETF: meaning, example and why it matters
Exchange-traded fund: a fund that trades on a stock exchange like a share, often tracking an index such as the Nifty 50. Its price moves during market hours.
Worked example
Some ETFs are priced at a small fraction of their index level, for example a unit near ₹240 for an index at 24,000 (illustrative). You can trade as little as one unit during market hours, and the ETF's return can differ slightly from the index because of costs.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
An ETF trades like a share but holds a basket, so it combines market-hours pricing with spread-out holdings. Its expense ratio is a continuing cost.
Related terms
See it in practice
Frequently asked questions
Is an ETF's price the same as its NAV?
Not always. The market price is set by trading on the exchange and can differ slightly from the NAV of the underlying holdings.
Is this page investment advice?
No. ETF is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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Start learning free →Educational content, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Spotted a mistake? Email marketdekho01@gmail.com.