HDFC Nifty Smallcap 250 ETF

About HDFC NIFTY Smallcap 250 ETF

• The HDFC NIFTY Smallcap 250 ETF is an open-ended scheme offered by the HDFC Mutual Fund House.
• The ETF predominantly invests in small-cap companies.
• It offers broad exposure to a diverse range of small-cap stocks in India, allowing investors to gain access to a wide array of companies with a single investment.
• The HDFC Nifty Smallcap 250 ETF was launched on February 15, 2023.
• The scheme’s assets under management (AUM) was ₹475.16 crore as of August 31, 2024.
• Abhishek Mor, Nirman Morakhia and Arun Agarwal have been the fund managers of the HDFC Nifty Smallcap 250 since its inception.
• The ETF is traded on both stock exchanges like a stock, which provides liquidity and flexibility for investors.
• The ETF units can be bought and sold during market hours at prevailing prices through a demat account.

Investment Objective and Benchmark

• The fund’s investment objective is to deliver returns that closely match the performance of the underlying index, subject to minor tracking errors.
• The benchmark for the HDFC Nifty Smallcap 250 ETF is the NIFTY Smallcap 250 Index (TRI).
• This Nifty Smallcap 250 Index, which includes roughly the 251st to 500th largest companies by market capitalisation from the NIFTY 500, offers investors access to a broad range of small-cap stocks.
• Small-cap stocks, usually in the early stages of growth, offer significant potential for wealth creation over the long term.
• The ETF invests in stocks from different sectors of the Indian economy, ensuring diversification of the fund.
• The risk profile of the HDFC Nifty Smallcap 250 ETF is very high, making it suitable for long-term wealth creation goals.

Asset Allocation and Portfolio Composition

• The scheme invests its funds a minimum of 95% in equity and it allocates the fund in 5% to debt securities.
• The top 10 company holdings comprise 10.76% of the ETF’s asset allocation.

The top 10 holdings of HDFC NIFTY Smallcap 250 ETF as of August 31, 2024, are:

• Crompton Greaves Consumer Electricals: 1.18%
• Multi Commodity Exchange of India: 1.18%
• Cyient Limited: 1.16%
• Blue Star: 1.14%
• Angle One Limited: 1.07%
• Central Depository Services (India): 1.05%
• IDFC Limited: 1.01%
• Glenmark Pharmaceuticals Limited: 0.99%
• RBL Bank Limited: 0.99%
• Karur Vysya Bank Limited: 0.98%

Sector-wise fund allocation in ETF comprises of:

• Financial: 17.86%
• Capital Goods: 12.88%
• Services: 10.81%
• Healthcare: 10.14%
• Construction: 6.72%
• Others: 41.59%

Over the past one year, the fund has returned 62.74%, while its benchmark index has delivered 63.37%, as of August 31, 2024.

Since the fund’s inception, the scheme has posted an annualised return of 58.67%.