ICICI Pru Nifty FMCG ETF

About ICICI Pru Nifty FMCG ETF: FMCGIETF

• ICICI Pru Nifty FMCG ETF (exchange-traded fund) is an open-ended scheme offered by the ICICI Prudential Mutual Fund House.
• The ETF includes stocks of the companies from FMCG sector.
• The scheme was launched on August 5, 2021.
• Kayzad Eghlim is the fund manager for this ETF.
• Investment in ICICI Pru Nifty FMCG ETF can be made directly through a demat account with a registered broker.
• Retail investors can buy or sell this ETF's unit during the trading of India's stock exchanges.

Investment objective & benchmark

• ICICI Pru Nifty FMCG ETF aims to offer returns that mirror the performance of equity stocks in the underlying index, subject to minor tracking errors.
• Categorised as a very risk investment product, the ETF is suited for investors looking at the long-term goal of wealth creation.
• The ETF is benchmarked against the Nifty FMCG Index designed to reflect the behavior of FMCG companies. This includes companies that deal with non-durable goods mass consumption products and available off the shelf.
• The index includes 15 stocks from the FMCG sector listed on the NSE.
• FMCG is the fourth largest sector in the Indian economy and with growing income level, consumption has been on the rise.
• With a large network of online marketplaces, FMCG products are readily available at customer's doorstep, further facilitating a boost to sales.
• The rural FMCG market is expected to grow at around 15% from 2020 to 2025.

Asset Allocation & Portfolio Composition

• The ETF has invested 99.16% of the available assets to investment in equity stocks. The remaining 0.84% is invested in other instruments like debt and cash.
• The scheme has diversified funds across various sectors with diversified FMCG contributing 52.01% and food products making up 13.59% of the asset allocation. This is followed by beverages at 12.58%, personal products at 12.29% and agricultural food and other products at 9.23%.
• ICICI Pru Nifty FMCG ETF has allocated funds across market capitalisations – 46.61% of the available assets to giant cap, 20.73% to large cap, 23.6% to mid-cap, 8.86% to small cap and 0.19% to tiny cap companies.
• The top 10 company holdings make up 92.64 % of the ETF's asset allocation.

Here's a list of the top 10 company holdings in ICICI Pru Nifty FMCG ETF

• ITC: 32.73%
• Hindustan Unilever: 19.28%
• Nestle India: 7.95%
• Varun Beverages: 6.84%
• Tata Consumer: 6.03%
• Britannia Industries: 5.64%
• Godrej Consumer: 4.55%
• Colgate-Palmolive: 3.31%
• United Spirits: 3.24%
• Dabur India: 3.07%

The ETF has posted a return of 16.62% in the past one year as of July 18, outperforming its underlying return yield of 15.54%.

Since its inception, the ETF has delivered a return of 20.73%.