Global ETFs can help portfolios truly diversify
Country-neutral ETFs provide a great opportunity to diversify away country risk
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Viram Shah
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Exchange-traded funds (ETFs) have revolutionized retail investment. By packaging slices of the market into liquid and tradeable vehicles, ETFs provide an investor with a low-cost and transparent way to invest in indices, commodities, foreign markets and more.
In the Indian markets, ETFs have just started to become popular. Over the last five years investments in Indian ETFs have seen a 30-time volume growth, most of it going towards Nifty50 ETFs. Although growth is largely driven by institutions, as awareness among the retail investor base grows and diverse ETFs become available, Indian retail investors will also start looking at ETFs. One of the key reasons why the awareness about ETFs is still low in India is because of their low expense ratio. While low expense ratios are good for the end inves