What is the low liquidity meaning in ETFs?

Low liquidity refers to a situation where an ETF has limited trading activity and fewer participants placing buy and sell orders. Because of this, bid-ask spreads may widen, available quantities at each price can remain small, and trades may influence market prices more noticeably.

What are some of the top low liquidity ETFs listed on NSE?

Several ETFs may fall into lower trading-activity buckets at different times. Examples based on market capitalisation include: UTI Nifty 50 ETF Bharat 22 ETF UTI BSE Sensex ETF Kotak Nifty Bank ETF BHARAT Bond ETF-April 2030-Growth Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

What factors influence low liquidity ETF prices?

Prices in low liquidity ETFs respond strongly to order flow. Limited trading interest can lead to wider spreads, higher impact cost, and sharper movement when large trades appear. The activity of authorised participants and the liquidity of the underlying basket also affect how closely prices align with portfolio value.

What is the future projection for low liquidity ETFs?

The direction of this segment depends on investor interest, product development, and demand for specific themes. While certain government or niche exposures may attract flows from time to time, trading activity can remain uneven across market cycles. Disclaimer: This is only for educational purposes as the latest data is derived from major financial research reports.

How do market participants evaluate low liquidity ETFs?

Investors must review indicators such as average volume, order book depth, spread behaviour, and premium or discount trends. The liquidity of the underlying securities and the consistency of market maker participation also influence how these ETFs function in practice. Disclaimer: : This is only for educational purposes, as the latest data is derived from major financial research reports.

Do low liquidity ETFs offer regular dividends?

Dividend distribution depends on the policy of the fund and the nature of the securities it holds. Some ETFs may pass on income when received, while others may reinvest. Payment frequency is not directly linked to how actively the ETF trades on the exchange. Disclaimer: The latest data on dividends is derived from Tickertape Stock Screener.

Is a low liquidity ETF suitable for the long term?

Suitability over longer horizons usually depends on the benchmark exposure, costs, and tracking behaviour rather than trading volume alone. Liquidity classification mainly influences how buying and selling may occur, not necessarily how the underlying assets perform. Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.

How can investors sell low liquidity ETFs?

Low liquidity ETFs trade on the stock exchange like shares. Investors can place sell orders through their broker during market hours. The final price depends on available buyers, prevailing bids, and the quantity present in the order book at that moment.

List of Top Low Liquidity ETFs in India

Q: How to invest in low-liquidity ETFs?

Here’s how you can invest in low-liquidity etfs – Go to the Tickertape Stock Screener Select the 'ETF' sector. Add a filter, ‘3M Average Volume’ and select 'Low’'. From the medium liquidity ETF, analyse and sort the etfs using over 200+ filters, including financials, technical indicators, and more, based on your investment thesis. Review the filtered list, and identify stocks that best align with your risk appetite, return expectations, and investment goals. Once you've shortlisted the stocks, click ‘Place Order’ to invest in your preferred etfs. Disclaimer: Please do your own research or consult your financial advisor before investing. Disclaimer: Please do your own research or consult your financial advisor before investing.

Low-liquidity ETFs represent funds where trading activity remains limited compared with broader market trackers. They may see fewer participants on either side of the order book, which can lead to wider spreads and sharper price reactions to trades. Let’s take a look at some of the low-liquidity ETFs below.

Top Low Liquidity ETFs (2026)

Low Liquidity ETF Screener

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Showing 1 - 20 of 208 results

last updated at 6:30 AM IST

	NameStocks (208)↓	↓Sub-SectorSub-Sector↓	↓Market CapMarket Cap↓	↓Close PriceClose Price↓	↓3M Average Volume3M Average Volume↓	↓1D Return1D Return↓	↓1M Return1M Return↓	↓6M Return6M Return↓	↓1Y Return1Y Return↓	↓Volatility vs NiftyVolatility vs Nifty↓	↓Expense RatioExpense Ratio↓
1.	UTI Nifty 50 ETF NIFTYBETA	EquityEquity	42,013.9142,013.91	267.80267.80	1,94,743.321,94,743.32	-0.17-0.17	6.586.58	-4.67-4.67	0.970.97	0.930.93	0.090.09
2.	UTI BSE Sensex ETF SENSEXBETA	EquityEquity	20,332.7920,332.79	857.55857.55	12,250.8612,250.86	0.020.02	5.575.57	-6.40-6.40	-2.34-2.34	1.001.00	0.080.08
3.	BHARAT Bond ETF-April 2030-Growth EBBETF0430	DebtDebt	8,490.138,490.13	1,571.081,571.08	19,602.7319,602.73	0.160.16	1.031.03	0.900.90	4.654.65	0.100.10	0.010.01
4.	Bharat Bond ETF - April 2023 EBBETF0423	DebtDebt	8,369.708,369.70	1,230.391,230.39	6,863.006,863.00	0.000.00	--	3.293.29	4.784.78	0.000.00	0.000.00
5.	BHARAT Bond ETF-April 2032 BBETF0432	DebtDebt	8,311.828,311.82	1,311.501,311.50	4,247.754,247.75	0.040.04	0.720.72	0.060.06	3.383.38	0.220.22	0.010.01
6.	BHARAT Bond ETF - April 2033 EBBETF0433	EquityEquity	3,523.443,523.44	1,273.451,273.45	9,933.619,933.61	0.220.22	0.910.91	0.010.01	2.872.87	0.250.25	0.010.01
7.	Kotak Nifty 50 ETF NIFTY1	EquityEquity	2,070.742,070.74	267.92267.92	3,60,752.153,60,752.15	-0.13-0.13	6.576.57	-4.60-4.60	0.950.95	0.940.94	0.030.03
8.	Kotak Nifty Next 50 ETF NEXT50ETF	EquityEquity	1,683.301,683.30	72.3972.39	43,346.1243,346.12	1.221.22	15.2215.22	4.534.53	4.534.53	1.781.78	0.070.07
9.	HDFC Nifty 50 ETF HDFCNIFTY	EquityEquity	1,206.371,206.37	272.45272.45	3,04,106.883,04,106.88	0.020.02	6.686.68	-4.52-4.52	0.590.59	0.970.97	0.050.05
10.	LIC MF Nifty 50 ETF LICNETFN50	EquityEquity	1,162.011,162.01	270.64270.64	3,119.813,119.81	0.050.05	6.466.46	-4.64-4.64	0.800.80	0.950.95	0.060.06
11.	UTI Nifty Next 50 Exchange Traded Fund NEXT50BETA	EquityEquity	1,031.061,031.06	77.3177.31	1,58,035.591,58,035.59	0.210.21	15.0815.08	3.363.36	12.8312.83	1.231.23	0.150.15
12.	LIC MF BSE Sensex ETF LICNETFSEN	EquityEquity	883.12883.12	873.64873.64	1,190.691,190.69	-0.14-0.14	5.125.12	-6.36-6.36	-2.33-2.33	1.061.06	0.110.11
13.	LIC MF Nifty 100 ETF LICNFNHGP	EquityEquity	737.14737.14	276.66276.66	1,168.861,168.86	0.070.07	8.338.33	-3.28-3.28	2.102.10	1.051.05	0.280.28
14.	LIC MF Nifty Midcap 100 ETF LICNMID100	EquityEquity	660.72660.72	62.2862.28	10,097.5810,097.58	1.281.28	14.8714.87	4.994.99	14.2514.25	1.501.50	0.160.16
15.	Mirae Asset NYSE FANG+ ETF MAFANG	EquityEquity	443.38443.38	187.05187.05	2,79,694.812,79,694.81	1.331.33	20.5120.51	7.487.48	51.4551.45	1.481.48	0.660.66
16.	Quantum Gold Fund QGOLDHALF	GoldGold	364.28364.28	124.84124.84	1,67,861.361,67,861.36	0.550.55	2.432.43	25.1525.15	53.8453.84	2.062.06	0.560.56
17.	SBI Nifty Bank ETF SETFNIFBK	EquityEquity	324.68324.68	572.65572.65	1,45,190.921,45,190.92	-0.00-0.00	7.287.28	-3.41-3.41	3.283.28	1.141.14	0.190.19
18.	Mirae Asset S&P 500 Top 50 ETF MASPTOP50	EquityEquity	270.52270.52	78.7078.70	2,50,343.442,50,343.44	0.940.94	14.2414.24	12.7312.73	54.6554.65	1.331.33	0.610.61
19.	Nippon India ETF Nifty SDL Apr 2026 Top 20 Eq.Wgt.SDL26BEES	DebtDebt	231.26231.26	136.94136.94	93,567.5093,567.50	0.000.00	-0.20-0.20	2.152.15	5.895.89	0.420.42	0.200.20
20.	Invesco India Gold ETF IVZINGOLD	GoldGold	203.46203.46	131.15131.15	97,929.3297,929.32	0.540.54	3.283.28	24.5324.53	53.5253.52	2.662.66	0.540.54

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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: 3M Average Volume: Low | Market Cap: Sorted from Highest to Lowest

What are Low-Liquidity ETFs?

Low-liquidity ETFs are exchange-traded funds that record lower trading volumes and wider bid-ask spreads on the exchange. Fewer buyers and sellers participate at any moment, so transactions may take longer or execute at prices slightly away from the last traded value.

Overview of Top Low-Liquidity ETFs in India

UTI Nifty 50 ETF

UTI Nifty 50 ETF tracks the Nifty 50 index. It holds shares of 50 of the largest companies listed in India and aims to replicate the benchmark’s performance before expenses.

Bharat 22 ETF

Bharat 22 ETF follows a diversified index of public sector undertakings, select private companies, and other government-linked enterprises. The portfolio spreads across sectors such as energy, finance, and industrials.

UTI BSE Sensex ETF

UTI BSE Sensex ETF mirrors the S&P BSE Sensex. It provides exposure to 30 established large companies and seeks to match the movement of this widely tracked benchmark.

Kotak Nifty Bank ETF

Kotak Nifty Bank ETF tracks the Nifty Bank index. It invests in leading banking stocks, so its performance largely reflects trends within the banking sector.

BHARAT Bond ETF-April 2030-Growth

This target maturity debt ETF invests in AAA-rated bonds issued by public sector entities that mature in April 2030. The structure aligns the portfolio with a defined timeline while focusing on high credit quality.

How to Invest in Low-Liquidity ETFs?

Here's how you can invest in Low-Liquidity ETFs using Tickertape -

Create an account on the Tickertape or log in if you already have one.
Open Low-liquidity ETFs Screener.
You can review this data to evaluate each ETF’s performance trends and determine whether they align with your investment thesis.
Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.

Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Taxation on Low-Liquidity ETFs

Tax treatment depends on what the ETF holds rather than how actively it trades on the exchange. Equity-oriented ETFs and commodity or debt-oriented ETFs therefore, follow different rules. The table below summarises the broad framework.

ETF Type	Underlying Exposure	Holding Period	Tax Treatment
Equity ETF	More than 65% in domestic equities	Less than 12 months	20% STCG
Equity ETF	More than 65% in domestic equities	More than 12 months	12.5% LTCG (gains up to ₹1.25 lakh exempt)
Commodity ETF	Gold or Silver	Less than 12 months	Taxed at income tax slab rate
Commodity ETF	Gold or Silver	More than 12 months	12.5% without indexation
Debt ETF	Debt instruments	Any period	Taxed at income tax slab rate

Benefits of Investing in Low-Liquidity ETFs

Access to Niche Exposures

Low activity on the exchange often appears in funds that track narrow themes, specialised sectors, or new strategies. These products can provide access to parts of the market that broad benchmarks may not capture.

Potentially Lower Crowding

Heavily traded ETFs can attract short-term flows, arbitrage, and tactical positioning. Lower participation sometimes means price moves are driven more by the underlying portfolio than by rapid trading sentiment.

Long-term Holding

Many participants use low-liquidity ETFs to build exposure to a theme and hold it for time rather than trade frequently. Portfolio changes, therefore, happen less often. Returns tend to reflect how the underlying companies or assets perform instead of short-term market noise.

Creation–redemption Support

Even when on-screen trading volume looks small, authorised participants can create or redeem units in the primary market. This process helps keep ETF prices linked to underlying asset values.

Risks of Investing in Low-Liquidity ETFs

Wider Bid–ask Spreads

Low trading activity can increase the difference between the buying price and the selling price. Investors may therefore pay a bit more while buying or receive a bit less while selling. This gap becomes part of the overall transaction cost.

Slippage in Large Orders

The number of units available at each price level can be small. A large buy or sell order may quickly exhaust those quotes. The final execution price can then move unfavourably compared to the initial expectation.

Harder Exits During Volatile Markets

Liquidity can fall further when markets become uncertain. Buyers or sellers may step back. Trades can take longer to complete, and spreads can widen sharply in such situations.

Temporary Difference From NAV

Because trades happen less frequently, the last traded price might not always match the current value of the ETF’s holdings. Market participants usually correct this difference, but short-lived gaps can appear.

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Conclusion

Low-liquidity ETFs can behave differently from heavily traded products, especially in terms of spreads, execution, and participation. Volume patterns, order book depth, and fund scale often shape the overall trading experience as much as the underlying portfolio itself.

Using tools like the Tickertape Stock Screener, with over 200 filters, can help investors compare and choose the right low-liquidity ETF in India that matches their investment thesis.

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Frequently Asked Questions on Low Liquidity ETFs

What is the low liquidity meaning in ETFs?
Low liquidity refers to a situation where an ETF has limited trading activity and fewer participants placing buy and sell orders. Because of this, bid-ask spreads may widen, available quantities at each price can remain small, and trades may influence market prices more noticeably.
How to invest in low-liquidity ETFs?
Here’s how you can invest in low-liquidity etfs –
1. Go to the Tickertape Stock Screener
2. Select the 'ETF' sector.
3. Add a filter, ‘3M Average Volume’ and select 'Low’'.
4. From the medium liquidity ETF, analyse and sort the etfs using over 200+ filters, including financials, technical indicators, and more, based on your investment thesis.
5. Review the filtered list, and identify stocks that best align with your risk appetite, return expectations, and investment goals.
6. Once you've shortlisted the stocks, click ‘Place Order’ to invest in your preferred etfs.
Disclaimer: Please do your own research or consult your financial advisor before investing.

Disclaimer: Please do your own research or consult your financial advisor before investing.
What are some of the top low liquidity ETFs listed on NSE?
Several ETFs may fall into lower trading-activity buckets at different times. Examples based on market capitalisation include:
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
What factors influence low liquidity ETF prices?
Prices in low liquidity ETFs respond strongly to order flow. Limited trading interest can lead to wider spreads, higher impact cost, and sharper movement when large trades appear. The activity of authorised participants and the liquidity of the underlying basket also affect how closely prices align with portfolio value.
What is the future projection for low liquidity ETFs?
The direction of this segment depends on investor interest, product development, and demand for specific themes. While certain government or niche exposures may attract flows from time to time, trading activity can remain uneven across market cycles. Disclaimer: This is only for educational purposes as the latest data is derived from major financial research reports.
How do market participants evaluate low liquidity ETFs?
Investors must review indicators such as average volume, order book depth, spread behaviour, and premium or discount trends. The liquidity of the underlying securities and the consistency of market maker participation also influence how these ETFs function in practice.

Disclaimer:: This is only for educational purposes, as the latest data is derived from major financial research reports.
Do low liquidity ETFs offer regular dividends?
Dividend distribution depends on the policy of the fund and the nature of the securities it holds. Some ETFs may pass on income when received, while others may reinvest. Payment frequency is not directly linked to how actively the ETF trades on the exchange. Disclaimer: The latest data on dividends is derived from Tickertape Stock Screener.
Is a low liquidity ETF suitable for the long term?
Suitability over longer horizons usually depends on the benchmark exposure, costs, and tracking behaviour rather than trading volume alone. Liquidity classification mainly influences how buying and selling may occur, not necessarily how the underlying assets perform.

Disclaimer: Please note that this is not a recommendation. Please do your own research or consult your financial advisor before investing.
How can investors sell low liquidity ETFs?
Low liquidity ETFs trade on the stock exchange like shares. Investors can place sell orders through their broker during market hours. The final price depends on available buyers, prevailing bids, and the quantity present in the order book at that moment.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.