Some ETF have High Volatility

ETF or Exchange Traded Funds is a low cost investment where the entry barrier is the lowest. We can buy some of the ETF for as low as Rs 20, so anyone have Rs 20 every day, they can buy 1 ETF every day. Now the problem is there are more than 200 ETFs in the market, and not all the ETF have high volume.

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The high volume ETF is usually the less volatile and it reflects the index. For example, NiftyBees is the ETF which tracks the Nifty 50 index. It has the highest volume and it is less volatile that means there are always buyers and sellers available in the market. The international ETFs are mostly volatile and thus sometimes I have seen the ETF going up by 10% or going down by 10% in a single day and that's what the volatile means.

Also the new ETF are mostly volatile because it doesn't have much buyer and seller. For example, today I have bought MNC ETF as part of my ETF Shop. After buying it has gone up by 40 paise and thus it has given me Rs 100 rise in just a 5 minutes. After a while it has come to the normal range, but we have seen that volatilityin the ETF as it was newly launched.

So if someone is getting info ETF they should get into the ETF which has the highest volume. I have created a Google sheet, https://docs.google.com/spreadsheets/d/1J4acxiXgt_XXr2AbIGxsYByurc3IKiO775f-vqN9tdE/copy where you can see the list of Indian's ETF with the highest volume per asset. For example, if you are looking for Nifty 50 etf then NiftyBees has the highest volume, similarly if you are looking for any particular asset class, you can get the highest volume ETF from that asset class and thus can invest in that.

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