BHARAT 22 ETF - ICICI Pru AMC

About BHARAT 22 ETF

• BHARAT 22 ETF is an open-ended scheme belonging to ICICI Prudential Mutual Fund House. It is an Exchange Traded Fund (ETF) listed on both the NSE and BSE.
• New Delhi-registered ICICI Prudential Asset Management Company Limited is the controlling company of the ETF. ICICI Prudential Trust Limited is the trustee while the fund managers are Priya Sridhar, Nishit Patel and Ajaykumar Solanki.
• The scheme was launched on November 24, 2017.
• BHARAT 22 ETF tracks and mirrors the S&P BSE Bharat 22 TRI. It aims to ensure the ups and downs of the underlying index are reflected up to the extent possible in the fund values.
• Since its commencement, the scheme has yielded Compounded Annualised Growth Return (CAGR) of 19.29% as of August 30, 2024. The ETF has registered 67.94% CAGR in the past one year.
• The ETF has given an annualised return of 42.49% in the past three years, as of August 30, 2024, and over 9.14% in the past 5 years.
• As of July 31, 2024, the ETF's Assets Under Management (AUM) was ₹20683.44 crore.

Investment Objective and Benchmark

• The scheme’s investment objective is to “invest in constituents of the underlying S&P BSE Bharat 22 Total Return Index (TRI) in the same proportion as in the underlying Index, and endeavour to provide returns before expenses, which closely correspond to the total returns of the underlying Index subject to tracking error.”
• S&P BSE BHARAT 22 Total Return Index (TRI) has been formulated as a barometer of the behaviour and performance of chosen companies disinvested by the Government of India as per its policy. 22 companies listed on BSE and disinvested by the Central government constitute the thematic Index.
• The index was created by picking the top 22 companies based on the annual returns submitted by them pertaining to the previous five years. The weights of the constituents are capped at 15%. The weight of each BSE sector has been capped at 20%.
• The weightage of each scrip is determined based on its free-float capitalisation (computed by multiplying the then share price with the number of shares that can be publicly traded). The index is reviewed annually.
• BHARAT 22 ETF opts for its component stocks in a proportion that resembles, to the extent possible, their weightage in the S&P BSE Bharat 22 TRI.

Asset Allocation and Portfolio Composition

• The asset allocation under the scheme is 95%-100% in equity and equity-related securities of companies constituting the S&P BSE Bharat 22 TRI, including derivative instruments to the extent of 5% of the net asset. The fund can source the remaining 0-5% from liquid/money market mutual fund schemes, money market instruments (with maturity of up to 91 days), including treasury bills repurchase (TREPS), cash and cash equivalents.
• As of July 31, 2024, the equity holdings in the ETF comprised around 99.86% of its assets. Short-term debt and net current assets made up the rest 0.14%. The top 10 equity holdings in the ETF comprised around 83.1% of its assets.
• According to the company website, the top three sectors (power, bank, diversified FMCG) constituted 51.73% of the assets.

Top 10 holding of BHARAT 22 ETF

• ITC Ltd.- 15.71%
• Larsen & Toubro Ltd.- 13.54 %
• NTPC Ltd.- 10.11 %
• Power Grid Corporation of India Ltd.- 8.13%
• State Bank of India- 7.12%
• Axis Bank Ltd.-7.03%
• Oil & Natural Gas Corporation Ltd.- 5.7%
• Bharat Electronics Ltd.- 5.41%
• Coal India Ltd.- 5.21%
• National Aluminium Company Ltd.- 5.14%