Edelamc - EBBETF0431

About Edelweiss Bharat Bond ETF.

• Edelweiss Bharat Bond ETF April 2031 is an Exchange-Traded Fund (ETF) launched by Edelweiss Asset Management Limited in collaboration with the Government of India and the public sector entities.
• It is a target maturity ETF, which holds bonds that mature around a specific target maturity date. The ETF itself has different series with varying maturity dates such as 3 years, 5 years and 10 years.
• The BHARAT Bond ETF - April 2033 is structured with a set maturity date — April 18, 2033 — at which point investors will receive their principal investment along with returns.
• Dhawan Dalal and Rahul Dedhia are the managers of the Edelweiss Bharat Bond ETF.
• Edelweiss BHARAT Bond ETF was launched on July 23, 2020.
• The scheme’s assets under management (AUM) stood at ₹13,834 crore as of June 30, 2024.
• The ETF is traded on both NSE and BSE which enables investors to trade at a market price during each session.
• The ETF units can be bought and sold directly through a demat account with a registered broker.

Investment Objective & Benchmark

• Investment Objective of Edelweiss BHARAT Bond ETF aims to track the Nifty BHARAT Bond Index, which comprises AAA-rated bonds issued by public sector companies and other government entities.
• It is benchmarked against the Nifty Bharat Bond Index.
• The strategy of the ETF is to invest in a diversified portfolio of bonds issued by central public sector enterprises (CPSEs), public sector banks (PSBs) and other government entities. These bonds are typically AAA-rated, indicating high credit quality.
• Investors can expect predictable returns as the ETF primarily invests in fixed-income securities with known maturity dates and coupon payments.
• This ETF is a passively managed investment, which aims to track the index performance, not try to beat the market.
• The scheme offers diversification benefits by investing in a portfolio of bonds issued by various public sector entities, thereby spreading credit risk.
• A moderate risk investment instrument, the ETF is suitable for investors seeking stable income and capital preservation over the investment horizon.

Asset Allocation & Portfolio Composition

• The asset allocation of Edelweiss Bharat Bond ETF April 2031 comprises over 99% in debt and 0.08% in cash & cash equivalents.

Rating-wise fund holding:

• AAA Rating: 86.92%
• SOV Rating: 8.20%
• Cash Equivalent: 4.80%
• AAA (CE): 0.08%

Top constituents of Edelweiss Bharat Bond ETF April 2031

• 6.90% REC Ltd. NCD (31-03-2031) - 7.26%
• 6.50% NHAI NCD (11-04-2031) - 7.17%
• 6.88% PFC Ltd NCD (11-04-2031) - 7.10%
• 6.41% IRFC NCD (11-04-2031) - 7.05%
• 6.45% NABARD NCD (11-04-2031) - 6.89%
• 6.80% NPCL NCD (21-03-2031) - 6.79%
• 7.32% Govt of India NCD (13-11-2030) - 5.96%
• 6.4% ONGC NCD (11-04-2031) - 5.93%
• 6.29% NTPC Ltd NCD (11-04-2031) - 5.76%
• 6.63% HPCL NCD (11-04-2031) - 5.57%

The ETF has delivered a return of 6.98% in the one year as of June 28, 2024, against the benchmark index's 6.86%

Since its inception, Edelweiss Bharat Bond ETF has given annualised returns of 5.35%.