ETF
Market basicsExchange-Traded Fund — an index fund that trades on the exchange like a share.
In plain terms
Needs a demat account and buys at a live price rather than end-of-day NAV.
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Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Gold ETF
Market basicsAn exchange-traded fund backed by physical gold.
In plain terms
Gold exposure without making charges, storage or purity risk. The practical default for most people.
International ETF
Market basicsAn exchange-traded fund listed on an Indian exchange that tracks an overseas index, bought through an ordinary demat account.
In plain terms
The simplest of the three routes abroad. Liquidity can be thin, and the price sometimes trades at a noticeable premium to what it holds.
Creation unit
Market basicsThe fixed large block in which an exchange-traded fund’s units are created or redeemed against the underlying basket at the official NAV, rather than one at a time on the exchange.
In plain terms
It is the mechanism that ties an ETF’s traded price to what it holds. When new units cannot be made, that tether is off and a premium can stand for weeks.
Digital gold
Market basicsFractional gold bought through an app, held by a private provider under a contractual arrangement.
In plain terms
Not regulated by SEBI, the RBI or IRDAI. The gold price is the same as an ETF's; the question is who holds it and what happens if they fail.
Indicative NAV
Market basicsAlso called: iNAV
The value of an exchange-traded fund’s underlying basket, computed and disseminated at short intervals during the session, as distinct from the price its units are changing hands at.
In plain terms
An ETF has two prices at once and your chart draws only the traded one. Comparing the two is the fastest way to tell whether a wick was information or a dislocation.