Exchange-traded funds (ETFs) are generally index-based funds that allow investors to buy or sell exposures to an index through a single financial instrument. ETF units are created and redeemed in-kind, rather than in-cash (as in the case of a unit trust fund). The in-kind creation and redemption...

This study attempts to construct an optimal portfolio by using Sharpe's Single index model. For this purpose NSE, NIFTY and all the 50 stocks have been used as market index for preparing portfolio. The daily data for all the stocks and index for the period of April 2006 to December 2011 have...