ICICI Prudential Midcap Select ETF

About ICICI Pru BSE Midcap Select ETF

• ICICI Pru BSE Midcap Select ETF is an open-ended scheme offered by the ICICI Prudential Mutual Fund.
• Nishit Patel is the fund manager for the ETF.
• The scheme was launched on July 4, 2016.
• The ETF offers exposure to various midcap stocks listed on the BSE through a single instrument.
• The Assets Under Management (AUM) of ICICI Pru BSE Midcap Select ETF stood at ₹61.89 crore as of July 31, 2024.
• The ETF units can be traded at the prevailing market price just like equity stocks.
• Buy orders of the ETF units can be placed directly by retail investors using a demat account of their choice.

Investment Objective and Benchmark

• The scheme aims to provide returns closely corresponding to the total return of the underlying index, subject to tracking errors.
• It is benchmarked against the S&P BSE MidCap Select Index.
• The index consists of 30 of the largest and most liquid companies within the BSE MidCap Index.
• The ETF invests in companies across business domains offering diversification of funds.
• The ETF protects investors from risks associated with investments in a particular sector or stocks.
• The scheme, a very high-risk financial tool, is suited for investors looking at the long-term goal of wealth creation.
• Since the investment is majorly in mid-cap companies, there’s a greater growth prospect against ETFs investing in large or giant-cap companies.

Asset Allocation & Portfolio Composition

• The asset allocation of the fund comprises up to 100% in equities. The fund can also allocate up to 1.22% to debt and up to 0.18% to other assets.
• The ETF follows a blend-oriented style of investing and invests across different market capitalisations
• As of June 30, 2024, the top 10 equity holdings in the ETF comprised around 49.58% of its assets.

Sector-wise allocation of the available assets:

• Finance: 16.25%
• Banks: 14.62%
• Industrial Products: 11.22%
• Retailing: 9.06%
• Auto: 8.58%

Top 10 holdings make up 52.28% of the ETF’s asset allocation. ICICI Pru BSE Midcap Select ETF top 10 holdings:

• Trent Ltd: 9.06%
• Shriram Finance Ltd: 6.08%
• Power Finance Corporation Ltd: 5.29%
• Max Healthcare Ltd: 5.23%
• REC Ltd: 4.88%
• TVS Motor Company Ltd: 4.13%
• Indian Hotels Company Limited: 4.08%
• Cummins India Ltd: 4.04%
• Tube Investments Ltd: 3.40%
• CG Power & Industrial Solutions Ltd: 3.39%

The ETF has delivered annualised returns of 56.6% in the last one year against the benchmark returns of 12.43% as of July 31, 2024.

Since its inception, the scheme has given Compounded Annualised Growth Return (CAGR) of 16.87%.