Brandon Wendell, CMT
Brandon Wendell
Exchange Traded Funds (ETFs) have long been used in the United States as a means for investing in multiple securities without the higher fees involved with mutual funds. An ETF is a tradable security that represents ownership in a basket of shares in multiple companies. The ETF is similar to a mutual fund in that you get to invest in more than one company with a smaller capital outlay.
The problem with Indian ETF’s has been twofold. First, there was a limited offering of different ETFs. There are only 33 ETFs available for trading in India. In the US there are over 500! The most well known ETFs are the Gold BEES. Secondly, the volume in these ETFs has been relatively low as investors and brokers were not educated in how to use them and chose mutual funds instead.
This may change with the recent entry of Goldman Sachs into the Indian markets. Goldman, one of the largest market players in the United States, did not have any interests in ETFs. They were primarily a large institutional trading firm. They started their own mutual fund unit in India in 2008 but as of March 2011, they bought Benchmark Asset Management Co. This purchase gave them ownership of the largest selection of ETFs in India.
As you can see by the picture below, the Nifty BEES ETF is weighted very similarly to the Nifty Index itself. The performance should mirror the index without the higher costs of a mutual fund.
You can buy a share of the ETF for Rs. 608.61 and have ownership in shares in all 50 Nifty stocks.
Even the Indian government is entering the ETF market. They have announced a bidding process for mutual fund companies to create an ETF that would allow people to invest in PSU’s. The bids must be submitted by 24th January.
With Goldman’s involvement in the market and more educational opportunities for investors, the ETF market share should continue to grow. This will offer a great way to diversify a portfolio with lowered costs. Since the ETFs are traded as stocks are, they also allow trading opportunities once the volume is sufficient. This is a market to watch in the upcoming year.
Neither Freedom Management Partners nor any of its personnel are registered broker-dealers or investment advisers. I will mention that I consider certain securities or positions to be good candidates for the types of strategies we are discussing or illustrating. Because I consider the securities or positions appropriate to the discussion or for illustration purposes does not mean that I am telling you to trade the strategies or securities. Keep in mind that we are not providing you with recommendations or personalized advice about your trading activities. The information we are providing is not tailored to any individual. Any mention of a particular security is not a recommendation to buy, sell, or hold that or any other security or a suggestion that it is suitable for any specific person. Keep in mind that all trading involves a risk of loss, and this will always be the situation, regardless of whether we are discussing strategies that are intended to limit risk. Also, Freedom Management Partners’ personnel are not subject to trading restrictions. I and others at Freedom Management Partners could have a position in a security or initiate a position in a security at any time.
Editors’ Picks
EUR/USD bounces toward 1.1750 as US Dollar loses strength
EUR/USD returned to the 1.1750 price zone in the American session on Friday, despite falling Wall Street, which indicates risk aversion. Trading conditions remain thin following the New Year holiday and ahead of the weekend, with the focus shifting to US employment and European data scheduled for next week.
GBP/USD nears 1.3500, holds within familiar levels
After testing 1.3400 on the last day of 2025, GBP/USD managed to stage a rebound. Nevertheless, the pair finds it difficult to gather momentum and trades with modest intraday gains at around 1.3490 as market participants remain in holiday mood.
USD/JPY advances to near 157.00 on BoJ's cautious tightening
The USD/JPY pair trades in positive territory for the fourth consecutive day around 157.00 during the early European session on Friday. The cautious pace of the Bank of Japan’s (BoJ) monetary tightening weighs on the Japanese Yen (JPY) against the Greenback. Traders will take more cues from the US Nonfarm Payrolls (NFP) report for December, which is due next week.
Editors’ Picks
Gold Price Annual Forecast: 2026 could see new record-highs but a 2025-like rally is unlikely Premium
Gold hit multiple new record highs throughout 2025. Trade-war fears, geopolitical instability and monetary easing in major economies were the main drivers behind Gold’s rally.
AUD/USD Price Annual Forecast: Is 2026 the year the Aussie breaks above 0.70? Premium
In a context where AUD/USD rate differentials, institutional credibility, and geopolitical dynamics are once again central, 2026 could mark a new phase in the balance of power between the Australian Dollar and the US Dollar.
USD/INR Price Annual Forecast: Indian Rupee could disappoint both optimists and pessimists alike in 2026 Premium
The Indian Rupee (INR) has seen a consistent depreciation against the US Dollar (USD) for the last several years and turned out to be the worst-performing Asian currency in 2025.
Top 10 crypto predictions for 2026: Institutional demand and big banks could lift Bitcoin
Bitcoin’s (BTC) adoption story is unraveling and the king crypto could see institutional demand return in 2026. Crypto asset managers like Grayscale are betting on Bitcoin’s rally to a new all-time high next year, and themes like Bitcoin as a reserve asset are emerging.
S&P 500 Price Annual Forecast: 2026 to benefit from decent growth as Trump runs it hot Premium
BlackRock, the world's largest asset manager, ran an online survey in early December asking respondents whether attractive returns for risk assets would continue for a fourth straight year in 2026.
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