Investment Performance and Tracking Efficiency of Indian Equity Exchange Traded Funds

Exchange Traded Funds (ETF’s) are one of the beloved passively managed funds that offer both retail and institutional investors an access to highly profitable wide- range diversifiable financial assets. The study aims assess ability Indian equity ETF’s in replicating performance their benchmark indices using a sample 27 traded on National Stock India during pre-pandemic period from 01/01/2015 31/12/2019. Evaluation through risk-return analysis, risk-adjusted measures, tracking error analysis multi-factor regression have revealed majority outperformed but with notable errors period. Further, also indicates returns significant positive relationship index inversely related risk management fees. results this will major implications for evaluating fund managers as well taking suitable measures reduce help successful replication along undertaking initiatives enable become price efficient.