HDFC AMC - HDFCSENSEX ETF

About HDFC BSE Sensex ETF

• The HDFC BSE Sensex ETF is an open-ended scheme that replicates or tracks the BSE 500 Index (Total Return Index).
• It belongs to the HDFC Mutual Fund house.
• The fund was launched on December 9, 2015, and it’s listed under the symbol HDFCSENSEX on the National Stock Exchange (NSE).
• The HDFC BSE Sensex ETF had ₹546.6 crore in assets under management (AUM) as of June 30, 2024.
• Arun Agarwal and Abhishek Mor are the fund managers.
• The ETF units can be bought and sold directly through a demat account with a registered broker.

Investment Objective & Benchmark

• The benchmark for the HDFC BSE Sensex ETF is the BSE Sensex Total Return Index.
• The scheme’s investment objective is to provide returns that roughly match the overall returns of the equities included in the S&P BSE SENSEX Index.
• The ETF offers investors exposure to India’s top 30 largest and most established companies, spanning various sectors and industries.
• Since the investment is primarily in big companies, the ETF protects investors from risks associated with smaller firms.
• Providing a straightforward investment approach for long-term wealth creation, this ETF tracks the BSE Sensex, ensuring that investors easily participate in the overall performance of prominent large-cap companies.
• The HDFC BSE Sensex ETF is ideal for investors who have a time horizon of three years or more.
• It falls under the category of very high risk funds, indicating a high level of risk associated with the ETF.
• The scheme includes stock from different sectors of the Indian economy. This diversification offers a shield against sector specific risk.

Asset Allocation & Portfolio Composition

• The HDFC BSE Sensex ETF allocates 95% to 100% of its total assets to securities covered by the BSE SENSEX Index (TRI).
• In addition, the fund allocates 0% to 5% of its total assets to debt securities and money market instruments, excluding funds in transit for subscriptions and money reserved for redemptions.
• The scheme primarily invests in giant and large cap companies allocating nearly 90% of the funds to them.
• The top company holdings make up 68.41% of the ETF's asset allocation.

The top 10 equity holdings in the HDFC BSE Sensex ETF portfolio as of June 30, 2024 comprise:

• HDFC Bank Ltd.: 13.97%
• Reliance Industries: 11.68%
• ICICI Bank: 9.30%
• Infosys: 6.24%
• Larsen and Toubro Ltd: 4.57%
• Tata Consultancy Services: 4.36%
• ITC Ltd: 4.33%
• Bharti Airtel Ltd: 4.25%
• Axis Bank Ltd: 3.92%
• State Bank of India: 3.59%

Sector-wise allocation of fund:

• Financial - 37.80%
• Energy - 15.32%
• Technology - 13.30%
• Consumer Staples - 7.77%
• Automobile - 6.46%
• Others - 19.35%

The fund has delivered an annualised return of 23.38% over the past year compared to the benchmark index’s yield of 23.69%

Since its inception, the ETF has returned a CAGR of 14.05%.