Impact of COVID on Indian and UK ETF Markets

Abstract

The article discusses the impact of the COVID-19 pandemic on exchange-traded funds (ETFs) in India and the UK. Equity and fixed-income ETFs faced significant declines in value but have since rebounded and seen inflows from investors. Gold ETFs faced challenges as the decline in the price of gold resulted in a decline in their value. The article emphasizes the importance of diversification in investing, even with ETFs. A study was conducted to analyze the impact of the pandemic on Debt ETFs, Equity ETFs, and Gold ETFs. The study collected data from the National Stock Exchange website and Paired t-tests and Chow Tests were used to test the statistical significance of differences in the close price, daily returns, and volume of traded value before and after the pandemic. The study found that different ETFs showed varying levels of performance and changes in different parameters, with some showing insignificant changes and others showing significant or structural changes.