Edelamc - EBBETF0433

About Edelweiss Bharat Bond ETF

• Edelweiss Bharat Bond ETF is an Exchange-Traded Fund (ETF) launched by Edelweiss Asset Management Limited in collaboration with the Government of India and the public sector entities.
• Edelweiss Bharat Bond ETF (EBBETF0433) offers investment in high-quality bonds issued by government-related entities in India.
• It is a target maturity ETF, which holds bonds that mature around a specific target maturity date, April 18, 2033.
• Dhawan Dalal and Rahul Dedhia are the managers of the Edelweiss BHARAT Bond ETF.
• Edelweiss BHARAT Bond ETF was launched on December 12, 2022.
• The assets under management (AUM) stood at ₹5,710.77 crore as of June 30, 2024.
• As the ETF units are listed on the NSE, BSE one can invest by buying units through a demat account.
• ETF units can be traded, like equity stocks, during the usual market hours

Investment Objective & Benchmark

• The investment objective of Edelweiss BHARAT Bond ETF is 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 ETF invests 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.
• It combines the benefits of bond investing with the convenience and liquidity of an ETF, making it a viable option for fixed-income investors seeking stability and income.
• Edelweiss BHARAT Bond ETF provides diversification benefits by investing in a portfolio of bonds issued by various public sector entities, thereby spreading credit risk.
• The ETF is suitable for investors seeking stable income and capital preservation over the investment horizon.
• Investors can expect predictable returns as the ETF primarily invests in fixed-income securities with known maturity dates and coupon payments.

Asset Allocation & Portfolio Composition

• The asset allocation of LIC Nifty 50 ETF comprises around 96.51% in debt and 3.41% in cash & cash equivalents.

Rating-wise fund holding:

• AAA Rating: 88.32%
• SOV Rating: 8.12%
• Cash Equivalent: 3.56%

Nifty Bharat Bond Index- April 2033 Constituents:

• National Bank for Agriculture and Rural Development: 15%
• National Highways Authority of India: 15%
• Power Finance Corporation Limited: 15%
• REC Limited: 15%
• India Railway Finance Corporation Limited: 14.95%
• NTPC Limited: 11%
• Export-Import Bank of India: 9.94
• Power Grid Corporation of India Limited: 3.28%
• NHPC Limited: 0.82

Since its inception, Edelweiss BHARAT Bond ETF has given returns of 5.74% and 7.48% in just the last year.