HDFC Nifty 50 ETF

About HDFC Nifty 50 ETF

• HDFC Nifty 50 ETF is an open-ended value-oriented equity scheme that belongs to HDFC Mutual Fund House.
• The fund comprises stocks that exhibit value-oriented characteristics.
• HDFC Nifty 50 ETF was launched on December 9, 2015.
• Arun Agarwal and Krishan Kumar Daga are the fund managers.
• HDFC Nifty 50 ETFs assets under management (AUM) stood at ₹3,605 crore as of June 30, 2024.
• HDFC Nifty 50 ETF is traded on the National Stock Exchange (NSE), which enables investors to trade at market price during each session.
• As the ETF units are listed on the NSE and BSE, one can invest by buying units through demat account with a registered broker.

Investment Objective & Benchmark

• The fund's investment objective is to deliver returns closely corresponding to the total performance of the securities as represented by the underlying index.
• It is benchmarked against the Nifty 50 Total Return Index.
• HDFC Nifty 50 ETF is a very high-risk investment instrument, best suited for investors looking at a long-term goal.
• The objective of ETF is to provide exposure to the value factor, with the index consisting of the 50 most liquid value blue chip companies listed on NSE.
• This fund invests largely in large-cap stocks, typically considered stable and less volatile.
• This ETF is a passively managed investment, which aims to track the index performance, not beat the market.
• The stocks selected in this fund are based on the return on capital employed, price to earnings ratio, price-to-book ratio and dividend yield.

Asset Allocation & Portfolio Composition

• The asset allocation of the HDFC Nifty 50 ETF comprises around 99.59% in equities and 0.41% in cash & cash equivalents.
• The scheme invests heavily in giant and large-cap companies, allocating nearly 90% of the fund to them.
• The top 10 company holdings in the ETF constitute 57.43% of the asset allocation.

The top 10 Holdings in stocks of HDFC Nifty 50 ETF include:

• HDFC Bank: 11.90%
• Reliance Industry: 9.94%
• ICICI Bank: 7.92%
• Infosys: 5.31%
• Laser & turbo: 3.89%
• TCS: 3.71%
• ITC: 3.68%
• Bharti Airtel: 3.63%
• Axis Bank: 3.38%
• SBI: 3.06%

Sector-wise allocation in this fund;

• Financial: 27.81%
• Technology: 12.67%
• Energy & Utilities: 12.29%
• Consumer Discretionary: 12.16%
• Materials: 9.5%
• Consumer Stables: 9.1%
• Industrials: 8.91%
• Healthcare: 4.88%

HDFC Nifty 50 has given a return of 26.59% in the last year as of June 30, 2024, against the benchmark index’s yield of 26.66%.

Since its inception, HDFC Nifty 50 ETF has given returns of 15.65%.