HDFC Nifty 100 ETF

About HDFC NIFTY 100 ETF

• HDFC Nifty 100 ETF is an open-ended scheme managed by HDFC asset management company.
• HDFC Nifty 100 ETF was launched on August 5, 2022.
• The scheme’s assets under management (AUM) stood at ₹15.19 crore as of June 30, 2024
• The ETF follows a passive investment strategy with minimal trading and management costs.
• The risk level of HDFC Nifty 100 ETF is very high.
• Arun Agarwal and Abhishek Mor are the fund managers of HDFC Nifty 100 ETF.
• 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 directly through a demat account with a registered broker.

Investment Objective & Benchmark

• The primary objective of the HDFC Nifty 100 ETF is to provide returns that closely correspond to the performance of the equity securities in its underlying index.
• It is benchmarked against Nifty 100 TRI.
• The ETF’s liquidity depends on the trading volume and the underlying liquidity of the stocks in the Nifty 100 Index. Typically, large-cap ETFs have good liquidity.
• HDFC Nifty 100 ETF include a diverse range of sectors and seeks to mirror the performance of the Nifty 100 ETF which can reduce risk compared to investing in individual stocks.
• The Nifty 100 Index comprises the top 100 large-cap stocks listed on the NSE. It is a broad representation of the Indian stock market, including a mix of blue-chip companies across various sectors.
• The ETF is suitable for investors looking for long-term capital growth through exposure to a broad range of large-cap stocks.

Asset Allocation of fund

• The scheme has allocated over 99.61% of the available funds to investment in equity securities. The remaining is invested in cash and debt instruments.
• Nearly 90% of the available assets are allocated in giant and large cap funds. The remaining is invested in mid-cap companies.
• The top 10 company holdings constitute 44.25% of the available asset allocation.

Top 10 Holdings in stocks of this ETF include:

• HDFC Bank Ltd: 8.99%
• Reliance Industries Ltd: 8.30%
• ICICI Bank Ltd: 6.34%
• Infosys Ltd: 4.41%
• Larsen and Toubro Ltd: 3.67%
• Tata Consultancy Services Ltd: 3.24%
• ITC Ltd: 3.13%
• Bharti Airtel Ltd: 2.64%
• Axis Bank Ltd: 2.45%
• State Bank of India Ltd: 2.38%

Sector-wise fund allocation:

• Financial: 30.48%
• Energy: 14.07%
• Technology: 9.98%
• Consumer Staples: 8.34%
• Automobile: 7.66%
• Others: 29.47%

Since its Inception, the ETF has given an annualised return of 20.91%.

HDFC Nifty 100 ETF has delivered a 31.98% return in the last year compared to the benchmark index's yield of 32.39%.