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As many as 18 ETFs have an impact cost of 0.11% or less, shows an analysis of Cafemutual ETF Research done on September 2022. The report captures the impact cost details of 109 ETFs.
Impact cost is simply the difference between the ideal price of an ETF unit and traded price of an ETF unit. Typically, when an investor buys or sells ETFs from a stock exchange, the chances are higher that he does not get the quoted price of unit by stock exchange due to different lot sizes and volumes. Impact cost is reported in percentage terms. The lower the impact cost, the better the ETF.
Among large cap ETFs, Nippon India ETF Nifty 50 BeES has the lowest impact cost of 0.3. The largest ETF in terms of AUM – SBI Nifty 50 ETF has impact cost of 0.7.
Overall, while Nippon India ETF Nifty 1D Rate Liquid BeES has the lowest impact cost of 0.01, Edelweiss ETF - Nifty Bank has the highest impact cost of 3.96.
Here is the list of top 3 funds with the lowest impact cost across different categories.
Large
Ranking |
Scheme |
Impact cost |
1 |
Nippon India ETF Nifty 50 BeES |
0.3 |
2 |
SBI Nifty 50 ETF |
0.7 |
3 |
Nippon India ETF Nifty Next 50 Junior BeES |
0.8 |
Mid
Ranking |
Scheme |
Impact cost |
1 |
Nippon India ETF Nifty Midcap 150 |
0.15 |
2 |
ICICI Prudential Nifty Midcap 150 ETF |
0.22 |
3 |
Motilal Oswal Nifty Midcap 100 ETF |
0.24 |
Sector
Ranking |
Scheme |
Impact cost |
1 |
Nippon India ETF Nifty Bank BeES |
0.3 |
2 |
Nippon India ETF Nifty IT |
0.9 |
3 |
SBI Nifty Bank ETF |
0.11 |
Gold
Ranking |
Scheme |
Impact cost |
1 |
Nippon India ETF Gold BeES |
0.3 |
2 |
SBI Gold ETF |
0.5 |
3 |
HDFC Gold ETF |
0.8 |
Debt
Ranking |
Scheme |
Impact cost |
1 |
Nippon India ETF Nifty 1D Rate Liquid BeES |
0.1 |
2 |
BHARAT Bond ETF - April 2031 |
0.6 |
3 |
BHARAT Bond ETF - April 2030 |
0.7 |
BHARAT Bond ETF - April 2025 |
Factor
Ranking |
Scheme |
Impact cost |
1 |
ICICI Prudential Nifty 100 Low Volatility 30 ETF |
0.17 |
2 |
ICICI Prudential Nifty50 Value 20 ETF |
0.18 |
3 |
ICICI Prudential Nifty Alpha Low- Volatility 30 ETF |
0.21 |
Thematic
Ranking |
Scheme |
Impact cost |
1 |
CPSE ETF |
0.9 |
2 |
BHARAT 22 ETF |
0.15 |
3 |
Mirae Asset Nifty 100 ESG Sector Leaders ETF |
0.17 |