ABSL Bank Nifty ETF

About Aditya BSL Nifty Bank ETF (ABSLBANETF)

• The Aditya BSL Nifty Bank ETF (ABSLBANETF) is an exchange-traded fund (ETF) that tracks the performance of the Nifty Bank Index.
• Managed by Aditya Birla Sun Life AMC Limited, this ETF provides investors an option to gain exposure to the banking sector.
• This ETF’s launch date is October 23, 2019.
• The Aditya BSL Nifty Bank ETF’s assets under management (AUM) is ₹2,721 crore as of June 30, 2024.
• The fund’s managers are Haresh Mehta and Pranav Gupta.
• When trading on stock exchanges, units of the ETF can be bought and sold in lots of one unit during trading hours on all trading days on the NSE and BSE.
• The units can be purchased directly through a demat account with a registered broker.

Investment Objective and Benchmark

• The Nifty Bank TRI is the benchmark index for the Aditya Birla Sun Life Nifty Bank ETF.
• The ETF’s investment objective is to produce returns that are almost equal to the cumulative returns of the securities that make up the Nifty Bank Index.
• It attempts to mirror the performance of the top banking stocks listed on the NSE.
• The banking industry is likely to maintain a steady growth trend thanks to the rising demand for financial services and the growing size of the Indian economy.
• Since the investment is mostly in large companies, the ETF protects investors from risk associated with smaller firms.
• The banking sector follows stringent regulations, ensuring that investor’s risk is limited against any corporate frauds.

Asset Allocation and Portfolio Composition

• The asset allocation of the Aditya BSL Nifty Bank ETF is predominantly focused on the banking sector, in line with its benchmark, the Nifty Bank Index.
• Under normal circumstances, the fund invests a minimum of 95% and up to 100% of its total assets in stocks that comprise the Nifty Bank Index. It allocates between 0% and 5% to debt and money market instruments.
• The 12 banking stocks that comprise the Nifty Bank Index are included in the portfolio composition.
• The market capitalisation of these stocks determines their weightage, which makes sure the ETF replicates the performance of the benchmark index as closely as possible.
• Top 10 company holdings constitute 95.03% of the ETF's asset allocation.

The 10 holdings of the Aditya BSL Nifty Bank ETF as of April 30, 2024, and their portfolio weights in percentage, are:

• HDFC Bank Limited: 29.04%
  • ICICI Bank Limited: 23.81%
  • Axis Bank Limited: 9.76%
  • State Bank of India: 9.57%
  • Kotak Mahindra Bank Limited: 7.91%
  • IndusInd Bank Limited: 6.44%
  • Bank of Baroda: 3.37%
  • Punjab National Bank: 2.70%
  • The Federal Bank Limited: 2.34%
  • IDFC First Bank Limited: 2.09%

The fund has delivered a return of 13.98% in the last year as of July 31, 2024, compared to the benchmark index's yield of 14.15%

Since its inception, Aditya BSL Nifty Bank ETF has posted a return of 13.05%.