Exchange Traded Funds vs. Index Funds: Comparative Performance Analysis
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Date
2019-07-24T12:21:13Z
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Abstract
To do any report on the organization it is necessary to learn about the company in-depth.
In this report people will come to know about the organization structure STATE
STREET GLOBAL ADVISORS, Bangalore. The performance of the company in the
market. SWOT analysis their strengths, weakness, opportunities, threats. Exchange
Traded Funds (ETFs) and Index Funds both are innovative products. ETFs are baskets of
securities that are traded on the stock exchange. It is a hybrid financial product that bears
the twin features of a stock and a mutual fund whereas Index Funds are mutual funds
which replicate the performance of broad market index but can be purchased or redeemed
only at the end of the day at the value of their net assets (NAV). The proposed study aims
to cover the performance evaluation of Indian ETFs and Index Funds which track the
same benchmark. Four different index funds along with four different exchange traded
funds are considered in the study respectively tracking same benchmark .The study is
based on secondary data and covers a period of five years i.e. from 2014-18 for the
purpose of evaluating relative performance of selected ETFs and Index Funds. The
parameters used for evaluating the performance are: Return, Risk, Sharpe Ratio, Beta,
Jensen’s Alpha and R square. This study will enable to recognize the difference in
performance of two significant similar passive investment strategies. The project has
given us a very good exposure to know the industry and to understand the working of
industry.
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SUMIT KUMAR, 1NH17MBA79