A study on Performance of Index Fund and ETFs: Comparative Analysis

Abstract

• Innovative merchandise involves both ETFs and Index Funds. ETFs are bundles of securities traded on the stock market. While Index Funds are shared funds that trace the results of wide-ranging market indices but can likewise venture into stocks, the blend produces a finance product that amalgamates both a stock and a shared fund. Only at the day's end can the total value of their entire assets be procured or redeemed. • The proposed evaluation strives to evaluate the show of index funds and exchange traded funds (ETFs) that pursue the same benchmark. • The scrutiny considers five separate index funds and five separate exchange traded funds that each trace the same benchmark. Performance evaluation criteria comprise Return, Risk, Sharpe Ratio, and Beta. This research will enable us to tell apart the differences in performance between two incredibly comparable passive investment methods.