Glide Invest FAQ: Does Glide Invest support ETF investments?

Does Glide Invest support ETF investments?

No, we do not support ETF investments, since we need to tie up with brokers for it. ETFs are currently not efficient as investors today overpay/undersell their investments by 1% due to poor exchange liquidity. In light of these inefficiencies, Index funds are a better value proposition.  Other differences between ETFs and Index Funds can be found in this article

Some other frequently asked questions about ETFs are as follows: 

I have a Demat account. Comparing ETFs with Index funds in terms of Cost (TER), is it good idea to split some of my investments? 
ETFs are lower in Cost (TER), but the holding cost of ETFs is a lot higher than Index funds today. Investors pay STT + Brokerage + liquidity costs on the exchange which increases the cost of buying ETFs significantly. There are no STT, brokerage and liquidity costs associated with Index funds. 

Do recent changes in the Expense ratio of Index funds make ETF a better alternative to index funds for the long term?
Recent changes are very small in nature. The cost of buying ETFs on the exchange is a lot higher. 

How about liquidity and Price-NAV deviations in ETFs? People say these 2 points are negative factors for ETFs. But are they cheaper cost-wise?
That is right. Cost is not as relevant for investors buying ETFs. It's exchange liquidity + price which matters most. 

What's your view on All-weather investing in smallcase (which invest in Equity, Debt, Gold ETFs)?
It's a good smallcase for investors who are looking for a portfolio solution. Motilal Oswal Asset Allocation Passive Funds are also very similar (investors can buy all asset classes in one single fund). 

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