Finzedia evaluates ETFs using a transparent, repeatable framework.
Our 10-Point Scorecard
- Expense Ratio (TER): Lower is better. We compare within the same category.
- AUM: Larger funds usually have better liquidity and lower closure risk.
- Trading Volume: Higher daily volume means tighter spreads and easier exits.
- Bid-Ask Spread: We check the spread as a percentage of price during normal hours.
- Tracking Error: We look at annualized deviation from the benchmark.
- Tracking Difference: We compare 1-year, 3-year, and 5-year returns vs the benchmark TRI.
- Premium/Discount to NAV: We warn when an ETF trades far from its NAV.
- Tax Category: We note how the ETF is taxed in each region.
- Underlying Index: We explain what the index actually covers.
- Suitability: We note who the ETF may suit and who it may not.
Data Sources
We use official AMC factsheets, AMFI data, NSE/BSE market depth, SEC filings, and issuer prospectuses.
Limitations
Our scorecard is educational. It is not a buy or sell signal. Always read the latest official documents before investing.