ETF turnover tops ~1 trn for second year on the trot
The value of exchange-traded funds (ETFS) changing hands on the National Stock Exchange (NSE) surpassed ~1 trillion in the first nine months of financial year 202324 (FY24), and for the second year in a row.
The traded value has touched ~1.19 trillion so far in FY24, which is already twice the pre-pandemic volumes, as per the Nifty Passive Insights report. The data for December has been released with a lag.
An analysis of additional data from Capitaline shows around ~0.37 trillion in trades since December. This would take the total for FY24 to ~1.6 trillion.
ETFS typically consist of securities which typically move in line with the movement of a chosen index. They allow for investors to take exposure to a given basket of underlying assets through units bought and sold on the stock exchange.
The number of ETFS have also doubled from 87 in FY20 to 190 in FY24 (till December). The number of equity ETFS has increased from 68 to 141 and debt from 8 to 24 in the same period. Gold ETFS have risen from 11 in FY20 to 15 in FY24.
Meanwhile, total assets under management of ETFS has touched ~6.5 trillion so far. This is over four times the pre-pandemic figures in FY20.
A break-up of the assets shows ~5.1 trillion, over 90 per cent, came from corporates, 6 per cent from high net-worth individuals, and 2 per cent from retail. Retail investors however accounted for 98 per cent of the total ETF folios. A folio is an investment account.
Retail investors are larger in number, translating into more investor accounts, though the amounts invested can be smaller than corporate entities.