According to reports from Mint, a comprehensive analysis of Nippon India ETF Gold BeES and SBI Nifty 50 ETF reveals significant performance differences across different investment horizons. The gold ETF demonstrated superior short-term performance, delivering 42.61% returns over one year compared to the Nifty 50 ETF's -3.54% decline. Over three years, gold ETF generated 32.27% returns versus Nifty 50's 10.01% gains. However, the performance gap narrowed substantially over longer periods, with both assets delivering broadly similar long-term returns.
As reported by Mint, a ₹1 lakh investment in Nippon India Gold ETF a year ago would have grown to ₹1.43 lakh, while the same investment in SBI Nifty 50 ETF would have declined to ₹96,460. Over five years, gold ETF's ₹1 lakh investment would have grown to ₹2.81 lakh compared to Nifty 50's ₹1.60 lakh. Over the 10-year period, gold ETF's ₹1 lakh investment would have grown to ₹3.95 lakh, while the same investment in SBI Nifty 50 ETF would be worth ₹3.33 lakh. According to the analysis, gold has significantly outperformed the Nifty 50 over short to medium terms, but the performance gap narrows considerably over longer investment horizons.
According to Mint data, both ETFs show similar beta values close to 1.0, indicating they tend to move broadly in line with their respective benchmarks. The gold ETF exhibits higher volatility with a standard deviation of 18.60 compared to Nifty 50's 13.80. Despite both ETFs having negative alpha, the gold ETF's -0.48 alpha indicates a smaller degree of underperformance against its benchmark. The gold ETF's Sharpe ratio of 1.43 significantly exceeds Nifty 50's 0.30, suggesting it delivered better risk-adjusted returns by generating more return for every unit of risk taken.
As per ETMarkets, Indian markets navigated a subdued week, ending with modest gains as Nifty hovered near a crucial resistance zone between 24,160 and 24,500. The benchmark index closed the week with a marginal gain of 42.90 points (+0.18%) after oscillating in a relatively narrow 476.65-point range. The Nifty is currently confronting a formidable resistance zone where the 100-day moving average (24,161) and the 100-week moving average (24,504) exist, making this cluster technically significant. Technical indicators suggest caution, with a decisive move above this resistance band needed to fuel further upside. The weekly RSI stands at 48.01 and remains neutral, while the weekly MACD continues to stay bullish and above its signal line.
