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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM67008
Volume:
10 |
8 |
Aug 2026
Pages:
1-7
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Commerce
Government First Grade College for Women, Holenarasipura
ETFs resemble a basket of assets or stocks and behave like the owner of assets underlying the fund. These assets include but are not restricted to companies’ stocks, foreign currency, gold, oil futures, and bonds. Since these funds can be purchased and sold on stock markets, similar to company shares, they resemble mutual funds. In India, index-linked and gold ETFs are the most common forms of this fund. ETFs divide the assets it owns into smaller units, referred to as shares, purchased, and sold on the exchange. The market value of net assets determines the current trading value of an ETF that the fund consists of at a particular time. In the current study in order to evaluate the performance of Index ETFs various parameters such as, Mean Returns, Standard Deviation, Beta, R-Square, Sharpe Ratio, Treynor Ratio, Tracking Error are widely used. The present study reveals that most of the Bank ETFs outperform their respective benchmarks over the study period. The overall analysis reveals the fact that the performance of the fund and market generally move in the same direction. This result is in consistent with the results achieved in European and Western Research Works.
KEYWORDS
In the current study it has been found that Bank ETFs on most count have been performing better than their common benchmark indices. With the application of Sharpe Ratio and Treynor ratio it is found that bank ETFs benchmarked against CNX bank Index is giving better return at per unit of risk than the Bank ETFs benchmarked against CNX PSU Bank Index. The tracking error of all the bank ETFs under study has also been computed in the present study and found that the tracking error of all the ETFs are on the lower side which is a reflection of its close movement with regards to the benchmark index. Further there is no Stastical difference between the bank ETFs return and their respective benchmarks return which is also reflected in the low tracking error of the Bank ETFs.
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Publication Date
8/28/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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