ICICIPRAMC - ICICIFIN

About ICICI Prudential Nifty Financial Services Ex-Bank ETF

• ICICI Prudential Nifty Financial Services Ex-Bank ETF is an exchange-traded fund offered by the ICICI Prudential Mutual Fund House.
• The ETF includes stocks of insurance firms, asset management companies, and other financial institutions.
• The scheme was launched on November 25, 2022.
• The assets under management of this ETF were valued at ₹82.27 crore, as of June 30, 2024.
• Nishit Patel is the fund manager.
• The exchange symbol for the ICICI Prudential Nifty Financial Services Ex-Bank ETF on the National Stock Exchange is FINIETF
• The fund is traded on both stock exchanges, which enables investors to trade at market price during each session.
• The ETF units can be bought directly using a demat account with a registered broker.

Investment Objective & Benchmark

• The scheme’s objective is to mirror the returns of the Nifty Financial Services Ex-Bank Index as closely as possible. This is achieved by holding the same securities as the index in similar proportions.
• The performance of the ETF is benchmarked by the Nifty Financial Services Ex-Bank Index.
• The index composition will have a mix of large-cap and mid-cap companies involved in financial services but not in banking.
• The ETF is periodically rebalanced to reflect changes in the underlying index. This helps maintain alignment with the index’s performance.
• ICICI Prudential Nifty Financial Services Ex-Bank EtF provides targeted exposure to the financial services sector without including banks. This can be useful if an investor believes other financial services companies will outperform banks.
• The goal is to invest in a range of financial services firms. The ETF offers diversification within the financial sector.
• A very high-risk financial instrument, the ETF is suitable for investors looking at a long-term investment goal.

Asset Allocation & Portfolio Composition

• The ETF invests in companies across market capitalisations around 67.22% in giant cap, 13,93% in large cap, 14.87% in mid-cap and 3.98% in small cap.
• The asset allocation of the fund comprises 99.83% in equity and 0.17% in cash and cash equivalent.

Sector-wise allocation of funds in this ETF:

• Financial: 70.14%
• Insurance: 17.04%
• Capital Market: 8.4%
• Financial Technology: 4.25%
• Others - 0.17%

The top 10 holding stocks comprise around 65.82% of the ETF’s asset allocation. Top 10 company holdings:

• Bajaj Finance: 15.31%
• Jio Financial: 9.14%
• Bajaj Finserv: 6.66%
• Shriram Finance: 6.26%
• Power Fin. Corporation: 5.44%
• SBI Life Insurance: 5.19%
• REC Ltd: 5.02%
• HDFC Life Insurance: 4.84%
• Cholaman Investment & Financial: 4.62%
• ICICI Lombard: 3.34%

In a single year, the ETF has given a return of 32.34% compared to the 32.04% return of its benchmarked index as of June 30, 2024.

Since its inception, the ICICI Prudential Nifty Financial Services Ex-Bank ETF has given a return of 28.34%.