HDFC Nifty PSU BANK ETF

About HDFC Nifty PSU Bank ETF

• The HDFC Nifty PSU Bank ETF is an open-ended scheme offered by the HDFC Mutual Fund House.
• It features stocks of public sector banks in India.
• The fund was launched on January 31, 2024, and it is listed on the National Stock Exchange (NSE) under the exchange symbol HDFCPSUBK.
• As of July 24, 2024, assets under management (AUM) of the fund stand at ₹23.59 crore as of June 30, 2024.
• The HDFC Nifty PSU Bank ETF is managed by Abhishek Mor and Arun Agarwal.

Investment Objective & Benchmark

• The HDFC Nifty PSU Bank ETF’s investment objective is to produce returns over the long run that closely resemble the performance of the underlying index.
• The HDFC Nifty PSU Bank ETF is benchmarked against the NIFTY PSU Bank Index (TRI).
• Public sectors have managed to bring down their NPAs substantially following regulatory actions over the past few years. The improved fundamentals offer improved growth prospects for the banks.
• In a growing economy like India, there's a demand for financial services offered by banks.
• The banking and financial services sector has unlocked new growth prospects through newer market penetration riding on the evolution of fintech.
• The fund is classified in the very high risk category, indicating that it can lead to substantial gains as well as losses.
• Investors looking for long-term results that track the NIFTY PSU Bank Index (TRI) performance can consider investing in this ETF.

Asset Allocation & Portfolio Composition

• The asset allocation of the HDFC Nifty PSU Bank ETF comprises 98.87% in equity and 1.13% in other assets.
• Sector allocation is primarily in financials, accounting for 98.87%, with 1.13% allocated to other sectors.
• In terms of market capitalisation, the distribution includes 67.22% in giant-cap stocks, 13.93% in large-cap stocks, 14.87% in mid-cap stocks, and 3.98% in small-cap stocks.
• The top 10 company holdings make up over 96% of the asset allocation.

Here are the top 10 holdings of the HDFC Nifty PSU Bank ETF as of March 31, 2024, with their weight in percentage:

• State Bank of India: 32.68%
• Bank of Baroda: 15.92%
• Canara Bank: 12.63%
• Punjab National Bank: 11.98%
• Union Bank of India: 9.49%
• Indian Bank: 5.90%
• Bank of India: 5.46%
• Bank of Maharashtra: 2.00%
• Indian Overseas Bank: 1.47%
• Central Bank of India: 1.18%

The ETF’s trailing returns have been 17.09% since inception (January 31, 2024), while the category returns for the past year has been 23.7%.