About HDFC NIFTY100 Quality 30 ETF

• HDFC NIFTY100 Quality 30 ETF is an open-ended scheme belonging to HDFC Mutual Fund House.
• It invests in select 30 companies listed on the NSE and are part of the Nifty 100 group.
• Arun Agarwal and Abhishek Mor are the fund managers.
• The scheme was launched on September 23, 2022.
• The assets under management (AUM) of HDFC NIFTY100 Quality 30 ETF stood at ₹12.66 crore as of June 30, 2024.
• The ETF units can be traded just like equity stocks at the prevailing market price of the time.
• One can invest in the scheme directly by buying the stocks through a demat account with a registered broker.

Investment Objective and Benchmark

• The scheme aims to provide investment returns which correspond to the total returns of the securities represented by the underlying index.
• It is benchmarked against the Nifty100 Quality 30 Index which constitutes the top 30 companies from the Nifty 100 index. The companies are selected based on their ‘quality’ scores.
• The ETF aims to provide exposure to companies with strong fundamentals, financial stability and consistent earnings.
• The quality score for each company is determined based on various factors such as return on equity (ROE), financial leverage (debt/equity ratio) and earning (EPS) growth variability analysed during the previous 5 years.
• The ETF offers exposure to companies from different business domains, giving diversification of funds.
• It limits the investors’ exposure to the sectoral risk or that of investing in particular stocks,
• A very high-risk investment instrument, the product is best suited for those looking at a long-term goal of wealth creation.

Asset Allocation & Portfolio Composition

• The asset allocation of HDFC NIFTY100 Quality 30 ETF comprises around 95-100% in the index covered by the fund and 0-5% in debt securities and money market instruments, units of debt schemes of mutual funds
• The ETF has diversified its funds to companies across market capitalisations. Giant and large-cap companies constitute over 66% of the scheme's asset allocation.

Top 5 sectors in the ETF

• IT- Software: 22.86%
• Automobiles: 12.65%
• Diversified FMCG: 10.03%
• Food Products: 7.59%
• Consumer Durable: 7.71%

As of June 30, 2024, the top 10 equity holdings in the ETF comprised around 53.21 % of its assets. HDFC NIFTY100 Quality 30 ETF top 10 holdings:

• Hindustan Unilever Ltd. – 5.05%
• Tata Consultancy Services Ltd. – 5.05%
• Infosys Limited – 5.04%
• Nestle India Ltd. – 5.03%
• Coal India Ltd. – 5.00%
• ITC Ltd. – 4.98%
• HDFC Bank Ltd. – 4.88%
• HCL Technologies Ltd. – 4.51%
• Asian Paints Limited – 4.34%
• Britannia Industries Ltd. – 3.83%

The HDFC NIFTY100 Quality 30 ETF has given Compounded Annualised Growth Return (CAGR) of 25.02% as of June 30, 2024, since its inception.

The HDFC NIFTY100 Quality 30 ETF has seen 32.15% CAGR in the last one year against the benchmark returns of 32.43% as of June 30, 2024.