the whole question is only about index etf and that to top etf like sbi.
I selected some of the top index ETF(Exchange Traded Funds), namely based on AUM they are from SBI,Nippon,UTI.
I want to invest in this, but during the market hours, i noticed when i placed market order it is not excuted, then it is a kind of red flag to me becuase the liquididty is not there and volume is also low and spread is also high.
Insted of investing in Mutual fund ETF I just wanted to invest in Index ETF.
Now i was worried to invest in this becuase of liquidity and spread. i am kind of into passive investing because they are more safe whcih i feel(very very long term).
But after looking at volume and spread and liquidity i was sad.
Lets say what if i invest regurlaryl in etf and suddenly there will no one buy when i want to sell ? all my investment is gone right ?
Can anyone help me how to approach this problem.
what will be the future of etf and etc…, should i consider this or not ?
So far it has been my experience with the EBBETF25 as well. I have put a limit order and it never hit that day and the next day .
I see that BEeS are really popular and I see the limit order placed being delivered in no time. Other than this the rest of the ETFs are kinda illiquid (is this the right word ?) .
I am surprised many ETFs from the most popular fund houses do not trade so well and if I have to sell it I have to put at a price lower . I think this has to do with the buyers on the other side . I think holding them long enough to cut down the losses on selling side would be a good idea .