HDFC Nifty 100 Low Volatility 30 ETF

About HDFC NIFTY100 Low Volatility 30 ETF

• HDFC Nifty 100 Low Volatility 30 ETF is an open-ended fund-of-funds scheme.
• The ETF comprises a selection of stocks with historically lower price fluctuations.
• It was launched on October 11, 2022.
• HDFC Nifty 100 Low Volatility 30 ETF has assets under management (AUM) that stood at ₹10.36 crore as of June 30, 2024.
• Arun Agarwal and Abhishek Mor are HDFC Nifty 100 Low Volatility 30 ETF’s fund managers.
• One can invest by buying units through a broker. The ETF units can also be bought and sold by retail investors directly from the demat account of their choice.

Investment Objective & Benchmark

• The investment objective is to provide returns that correspond to the total return of the underlying index.
• It is benchmarked against the Nifty 100 Low Volatility 30 Total Return Index.
• The ETF invests in stocks that have shown lower volatility in the past. This strategy aims to provide stability and reduce risk for investors.
• The scheme diversifies the funds across companies from various sectors, limiting the investors’ exposure to the risk of consolidating funds in a particular segment.
• The risk factor level of HDFC Nifty 100 Low Volatility 30 ETF is very high. It is suited for investors looking at long-term goals.
• This ETF offers a targeted approach for investors looking to mitigate risk through exposure to stocks with historically lower volatility within the Nifty 100.
• It combines the benefits of diversification, liquidity and potentially lower costs associated with ETF investments.

Asset Allocation & Portfolio Composition

• The fund's asset allocation comprises around 99.08% in equities and 0.16% in cash & cash equivalents.
• It rebalances every 6 months to represent the current largest companies and sectors. Reconstitution of the ETF happens semi-annually in June and December.
• The scheme features stocks from multiple sectors including FMCG, financial services, consumer durables, oil & gas, telecommunication, construction, power and automobile.
• The top 10 holdings in HDFC Nifty 100 Low Volatility 30 ETF stocks constitute 33.68 % of the asset allocation.

Here’s a list of the top 10 company holdings in the scheme:

• Hindustan Unilever: 4.26%
• ICICI Bank: 4.17%
• Titan Company Ltd: 4.01%
• Sun Pharmaceutics Industries: 3.94
• Asian Paints Limited: 3.89%
• Britannia Industries: 3.86%
• Nestle India: 3.80%
• ITC Ltd: 3.77%
• Kotak Mahindra Bank Limited: 3.66%
• Reliance Industries Limited: 3.58%

Since its inception, the fund has generated a CAGR of 27.95% for its investors and 32.42% in the last year.