ICICIPRAMC - ICICIINFRA

About ICICI Prudential NIFTY Infrastructure ETF

• ICICI Prudential NIFTY Infrastructure ETF is an open-ended scheme from the ICICI Prudential Mutual Fund House. It is used as an Exchange Traded Fund (ETF).
• 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, Ajaykumar Solanki and Nishit Patel.
• The scheme was launched on August 17, 2022. The ETF is listed on the BSE and the National Stock Exchange of India (NSE).
• ICICI Prudential NIFTY Infrastructure ETF tracks and mirrors the Nifty Infrastructure Total Return Index (TRI). It makes every effort to ensure the snake-and-ladder movement of the underlying index is reflected to the extent possible in the fund values.
• Since it started, ICICI Prudential NIFTY Infrastructure ETF has yielded an annualised return of 38.55% as of July 30, 2024.
• The ETF has netted 56.7% CAGR in the past one year as of July 30, 2024.
• The ETF’s Assets Under Management (AUM) amounted to ₹132.05 crore as of June 30, 2024.

Investment Objective and Benchmark

• The scheme’s investment objective is “to provide returns before expenses that closely correspond to the total return of the underlying index (Nifty Infrastructure Total Return Index), subject to tracking errors”.
• The Nifty Infrastructure Total Return Index (TRI) has been formulated as a barometer of the behaviour and performance of the infrastructure sector. The thematic Index comprises top companies in the infrastructure sector belonging to categories like power, ports, roads, railways, telecom, air and shipping, and many other utility service industries.
• The index consists of a maximum 30 companies listed with the National Stock Exchange of India (NSE). The weights of the constituents are 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 semi-annually, with the reconstitutions taking effect from March and September.
• ICICI Prudential NIFTY Infrastructure ETF opts for its component stocks in a proportion that resembles, to the extent possible, their weightage in the Nifty Infrastructure Total Return Index (TRI).

Asset Allocation and Portfolio Composition

• The asset allocation under the Scheme is 95%-100% in equity and equity-related securities of companies making up the Nifty Infrastructure Index. For the rest 0-5%, the fund can dip into money market instruments including Treasury Bills Repurchase (Teps) - a financial instrument representing a short-term lending and borrowing arrangement between two parties - or the same type of instruments permitted by RBI/SEBI.
• As of June 30, 2024, the equity holdings in the ETF comprised around 99.92% of its assets. Short-term debt and net current assets made up the rest 0.08%.
• As of June 30, 2024, the top 10 equity holdings in the ETF comprised around 72.11% of its assets. The top three sectors (petroleum products construction and power) constituted 50.99% of the assets.

The top ten holding stocks of ICICI Prudential NIFTY Infrastructure ETF and weightage:

• Reliance Industries Ltd.- 20.94%
• Larsen & Toubro Ltd.- 12.82%
• Bharti Airtel Ltd.- 1.94%
• NTPC Ltd. - 5.56%
• Power Grid Corporation Of India Ltd.- 4.66%
• Ultratech Cement Ltd- 4.17%
• Adani Ports and Special Economic Zone Ltd- 3.36%
• ONGC- 3.31%
• Grasim Industries Ltd- 3.04%
• Tata Power Company Ltd- 2.31%