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About ICICI Prudential Nifty Private Bank ETF

• The ICICI Prudential Nifty Private Bank ETF is an open-ended sector-focused equity scheme managed by ICICI Prudential Mutual Fund.
• Established on August 9, 2019, the ETF features stocks of private sector lenders, listed on India’s stock market.
• – The total assets under management (AUM) in this ETF was ₹2711.86 crores as of June 30, 2024.
• Nishit Patel is the fund manager for ICICI Prudential Nifty Private Bank ETF.
• Investment in this ETF can be made via a demat account with a registered broker.
• ICICI Prudential Nifty Private Bank ETF units can be bought and sold like equity stocks.

Investment objective and benchmark

• The ICICI Prudential Nifty Private Bank ETF aims to achieve returns that closely mirror the total return of the securities part of its benchmark index
• The ETF is benchmarked against the Nifty Private Bank Index, which comprises top private sector banks listed on the National Stock Exchange (NSE). These stocks are chosen based on their market capitalisation and liquidity to replicate the index’s performance dynamics.
• This ETF diversifies funds into leading private bank stocks, offering a cost-effective alternative to investment in individual shares.
• The banking sector in India is poised for growth, driven by increasing service demand, continuous operational improvements and enhanced business fundamentals following sectoral reforms
• Private banks in India have shown better growth trajectory compared to public sector lenders, indicating greater efficiency in operation.
• Classified as a very high-risk investment, the ICICI Prudential Nifty Private Bank ETF falls under the Equity: Sectoral-Banking category of funds.

Asset allocation and portfolio composition

• The ICICI Prudential Nifty Private Bank ETF had allocated 99.61% of its assets to equities and 0.39% to cash and cash equivalents, as of June 30, 2024.
• Since it is a sectoral ETF, the fund has allocated 99.61% of the available assets to stock of companies operating in the financial sector.
• The scheme has made investments across market capitalisations — 67.22% to giant cap, 13.93% to large cap, 14.7% to mid-cap and 3.98% to small-cap companies.
• The top 10 company holdings made up 99.61% of the ETF's asset allocation.

Here are the top 10 holdings of ICICI Prudential Nifty Private Bank ETF:

• ICICI Bank: 25.44%
• HDFC Bank: 24.99%
• Kotak Mahindra Bank: 11.38%
• Axis Bank: 11.19%
• IndusInd Bank: 11.01%
• Federal Bank: 5.52%
• IDFC First Bank: 4.27%
• Bandhan Bank: 2.19%
• RBL Bank: 2.05%
• City Union Bank: 1.57%

The returns of the ICICI Prudential Nifty Private Bank ETF over various time periods are as follows — 15.44% over one year, 12.88% over three years and 11.26% since launch. In comparison, the category returns for the same durations are 26.1% over one year, 17.38% over three years and 13.72% over five years.