ABSL BSE Sensex ETF

About ABSL BSE Sensex ETF

• ABSL BSE Sensex ETF is an open-ended value-oriented equity scheme that belongs to Aditya Birla Sun Life Mutual Fund House.
• The ETF aims to provide investors with exposure to the performance of the 30 largest and most liquid stocks listed on the BSE.
• Haresh Mehta and Pranav Gupta are the fund managers.
• ABSL BSE Sensex ETF was launched on July 14, 2016.
• It rebalances every 6 months to represent the current largest companies and sectors. Reconstitution of the ETF happens semi-annually in June and December.
• ABSL BSE Sensex ETF has assets under management (AUM) that stood at ₹507.13 crore as of June 30, 2024.
• The fund is traded on both stock exchanges, which enables investors to trade at market price during each session. One can invest by buying units through a demat account.

Investment Objective & Benchmark

• The investment objective is to provide returns that correspond to the total return of the underlying index, subject to tracking errors.
• It is benchmarked against BSE Sensex TRI.
• The ABSL BSE Sensex ETF is designed to measure the performance of BSE Sensex ETF and represents the top 30 companies selected based on float-adjusted market capitalisation, liquidity and volume.
• The ETF invests in the constituent stocks of the BSE Sensex and the same proportion as their weightage in the index.
• The scheme largely invests in giant and large-cap companies which traditionally offer more stable returns.
• It features top companies from the key sectors of the Indian economy.
• A very risky investment instrument, the ETF is suited to investors looking at a long term goal of wealth creation.

Asset Allocation & Portfolio Composition

• The fund's asset allocation comprises around 99.49% equities and 0.51% in cash & cash equivalents.
• The ETF has invested heavily in giant and large-cap companies allocating nearly 90% of the funds. The remaining assets are allocated to mid-cap companies.
• The top 10 company holdings make up 65.62% of the asset allocation.

The top 10 Holdings in stocks of ABSL BSE Sensex ETF include:

• HDFC Bank Ltd: 13.68%
• Reliance Industries Ltd: 11.61%
• ICICI Bank Ltd: 9.25%
• Housing Development Finance Corporation Ltd: 6.99%
• Infosys Ltd: 5.91%
• Larsen & Toubro Ltd: 5.10%
• ITC Ltd: 4.69%
• TCS Ltd: 4.42%
• Bharti Airtel Ltd: 4.09%
• Axis Bank Ltd: 3.88%

Sector-wise allocation in this fund:

• Financial: 33.06%
• Energy: 14.59%
• Information Technology: 12.46%
• Automobiles: 8.01%
• Consumer Staples: 7.86%
• Materials: 4.43%
• Healthcare: 4.13%
• Construction: 3.89%
• Communication: 3.62%
• Metals & Mining: 3.13%
• Services: 1.80%
• Consumer Discretionary: 1.33%
• Insurance: 1.22%
• Others: 0.94%

The ETF has delivered a return of 23.40% in the last one year as of July 29.

Since its inception, the fund has generated annualised returns of 14.15% for its investors.