ETFs are types of Mutual Funds that aim to track the performance of a specific index such as NIFTY 50, NIFTY Next 50, NIFTY Bank etc. These ETFs can be based on indices tracking various
asset classes like equity shares (NIFTY 50 ETF), bonds
(10 year G-Sec ETF), Gold (Gold ETF), Tri-party Repo (Liquid ETF) etc. In an ETF, the weight of all securities mirrors the weight of the securities in the underlying benchmark index. For example, if ABC Bank has a weight of 10.52% in NIFTY
50, a NIFTY 50 ETF will also have ~10.52% of ABC Bank by weight in its portfolio.
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