DSP Nifty 50 Equal Weight ETF

About DSP Nifty 50 Equal Weight ETF

• DSP Nifty 50 Equal Weight ETF is an exchange-traded fund offered by the DSP Mutual Fund house.
• It includes stocks of the top 50 stocks based on their market capitalisation.
• The scheme was launched on November 8, 2021.
• Anil Ghelani and Diipesh Shah have been the fund manager for this ETF since its inception.
• Investment in the ETF can be made through a demat account registered with a broker.
• DSP Nifty 50 Equal Weight ETF units can be bought and sold during the usual trading hours of the stock market.

Investment Objective & Benchmark

• The ETF intends to offer returns that before expense replicate the performance of equity securities of the underlying index.
• The scheme is benchmarked against DSP Nifty 50 Equal Weight Index representing an alternative weighing strategy to its market capitalisation-based parent index, the Nifty 50.
• The ETF includes stocks from key performing sectors of the Indian economy, offering a stable growth prospect to investors.
• It diversifies the fund to companies from various segments, limiting the investors' exposure to sectoral risks. The ETF also includes companies with export-based businesses facilitating growth based on the rise of global demand.
• It is best suited for investors looking at a long-term goal with investment in a passive strategy.
• This is a zero-bias product and only replicates an index. It does not carry any stock or sector bias.

Asset Allocation & Portfolio Composition

• DSP Nifty 50 Equal Weight ETF predominately invests in equity, allocating over 99.88% of the assets.
• The ETF invests across sectors with financial segment companies contributing 17.63% of the asset allocation. It allocates 12.07% of the assets to technology, 11.81% to automobiles, 10.22% to energy, 9.98% to consumer staples and the remaining 38.29% to other sectors.
• Nifty 50 Equal Weight ETF has allocated assets across sectors with giant cap companies contributing the biggest share. The scheme has invested 79.37% of the funds in the giant cap, 10.30% in large and 10.33% in mid-cap companies.
• The top 10 company holdings make 20.67% of the asset allocation as of June 2024.

Here’s a list of top company holdings in the ETF:

• Ultratech Cement - 2.12%
• Reliance Industries - 2.12%
• Grasim Industries - 2.09%
• Dr. Reddy's Laboratories - 2.08%
• LTIMindtree - 2.07%
• NTPC - 2.07%
• Tata Motors - 2.04%
• Wipro - 2.04%
• ONGC - 2.02%
• Britannia Industries - 2.02%

The ETF has yielded a return of 35.88% compared to the benchmark index's 36.33% earnings as of June 28, 2024.

Since its inception, the ETF has delivered a CAGR of 17.54%.