Is It Safe to Invest in Global ETFs in India Right Now?
Global ETFs are a great way to get international exposure, but the current premium levels are forcing investors to rethink. These premiums appear because the supply of ETF units is not increasing, while demand keeps rising. Even strong global rallies contribute to a widening gap between price and NAV. Liquidity plays a major role too, since fewer sellers lead to sharp price movements. While long-term investors may still benefit from global diversification, entering at very high premiums can create short-term risks. It might be better to enter in small amounts or wait for the premium to cool down. Has anyone here actually booked losses due to premium correction?