Does anyone trade the NIFTYBEES - the nifty exchange traded fund? Is it liquid enough to trade (not for daytrading but to trade intermediate to long term moves)? I was wondering if it is liquid enough to trade. The volumes seem to be low but I am intrigued by the following statements about the NIFTYBEES (found these on Benchmark Funds website):
ETFs derive their liquidity first from trading the shares in the secondary market and second through the in-kind creation / redemption process with the fund in creation unit size. Due to the unique in-kind creation / redemption process of ETFs, the liquidity of an ETF is actually the liquidity in the underlying shares.
Does this mean the NIFTYBEES are liquid enough to trade? I sorely miss trading the QQQQs (Nasdaq 100 Index ETF) that I use to trade in the US.
--SwingTrader
ETFs derive their liquidity first from trading the shares in the secondary market and second through the in-kind creation / redemption process with the fund in creation unit size. Due to the unique in-kind creation / redemption process of ETFs, the liquidity of an ETF is actually the liquidity in the underlying shares.
Does this mean the NIFTYBEES are liquid enough to trade? I sorely miss trading the QQQQs (Nasdaq 100 Index ETF) that I use to trade in the US.
--SwingTrader
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