Want to buy an ETF? Check out these most liquid Equity ETFs

The big benefit of an ETF over an index fund is its superior structure. An ETF can much closely mimic its benchmark index than an index fund because of the way an ETF is ‘created’. As passive investing gains traction among retail investors, an index funds’ underperformance - in the past - has put the spotlight on an ETF’s superior structure. But lack of liquidity can dampen an ETF, which might result in the rise of its impact cost.

One of the main parameters that one should look at while choosing ETFs is liquidity. Liquidity, or the trading volume plays an important part in your ETF selection. Since you can buy and sell units only on the stock exchange, it is imperative that there should be ample sellers and buyers available when you want to buy and offload your units and you are able to get a good price.
It is better to choose ETFs that are traded every day with decent volumes. You should strictly avoid the ETFs that are thinly traded.
Here are the top actively traded equity ETFs on NSE. Source: NSEIndia and ACEMF. Returns are as of February 23, 2024. Portfolio data as of January 2024.

Nippon India ETF Nifty 50 BeES
5 year return (CAGR): 16.8%
Corpus: Rs 20,317 crore

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Nippon India ETF Nifty Bank BeES
5 year return (CAGR): 11.8%
Corpus: Rs 6,248 crore

SBI Nifty 50 ETF
5 year return (CAGR): 16.8%
Corpus: Rs 1,72,064 crore

Nippon India ETF Nifty IT
3 year return (CAGR): 17.3%
Corpus: Rs 1,972 crore

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Nippon India ETF Nifty PSU Bank BeES
5 year return (CAGR): 20.6%
Corpus: Rs 2,189 crore

CPSE ETF
5 year return (CAGR): 28%
Corpus: Rs 33,635 crore

ICICI Prudential Nifty 50 ETF
5 year return (CAGR): 16.8%
Corpus: Rs 11,526 crore

Nippon India ETF Nifty Next 50 Junior BeES
5 year return (CAGR): 18.5%
Corpus: Rs 4,216 crore

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Kotak Nifty Bank ETF
5 year return (CAGR): 11.7%
Corpus: Rs 4,704 crore

SBI Nifty Bank ETF
5 year return (CAGR): 11.8%
Corpus: Rs 4,531 crore

Nippon India ETF Nifty Midcap 150
5 year return (CAGR): 25.7%
Corpus: Rs 1,187 crore

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Nippon India Nifty Pharma ETF
2 year return (CAGR): 22%
Corpus: Rs 578 crore

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