ICICI Pru Nifty Healthcare ETF

About ICICI Prudential Nifty Healthcare ETF

• ICICI Prudential Nifty Healthcare ETF is an exchange-traded fund offered by ICICI Prudential Mutual Funds.
• The ETF was launched on May 9, 2021.
• The fund mainly invests in shares of pharmaceutical and healthcare companies.
• Nishit Patel is the fund manager for ICICI Prudential Nifty Healthcare ETF.
• Retail investors can invest in ICICI Prudential Nifty Healthcare ETF through their demat account.
• Just like equities, investments in the ETF can be made by placing buy orders through the broker during the usual trading hours.

Investment Objective & Benchmark

• ICICI Prudential Nifty Healthcare ETF aims to offer returns that replicate the performance of the underlying index. However, the ETF doesn't guarantee any minimum return.
• It is benchmarked against the Nifty Healthcare Index, comprising a maximum of 20 stocks listed on the National Stock Exchange.
• The ETF allows investors to gain from growth in the pharma industry with diversified investments in the top companies in the sector.
• Indian pharma companies supply a good portion of their products to the international market making them more equipped to mitigate through domestic instability.
• The demand for pharma products tends to be relatively stable, considering the enhanced focus on healthcare, especially after the COVID-19 pandemic.
• The ETF is passively managed, making it more cost-effective than other actively managed funds.

Asset Allocation & Portfolio Composition

• ICICI Prudential Nifty Healthcare ETF allocates 100% of the funds to equities.
• The ETF has invested 80.63% of the funds in stocks of pharmaceuticals and biotechnology companies whereas the remaining 19.37% investment was made in healthcare services companies.
• The ETF invests funds across market capitalisations – around 15.25% in giant-cap, 33.95% in large-cap companies, 41.29% in mid-cap, 9.38% in small-cap companies and the remaining 0.12% in tiny cap firms.
• The top 10 equity holdings in ICICI Prudential Nifty Healthcare ETF constituted 81.69% of the assets, as of May 2024.

Here's a list of 10 companies in this ETF along with portfolio weightage:

• Cipla - 10.43%
• Apollo Hospitals - 8.07%
• Dr Reddy's Labs - 9.69%
• Lupin - 5.25%
• Torrent Pharma - 3.38%
• Sun Pharma- 21.64%
• Aurobindo Pharma - 4.58%
• Zydus Lifesciences - 3.48%
• Divi's Lab - 7.54%
• Max Healthcare - 7.63%

ICICI Prudential Nifty Healthcare ETF yielded a return of 43.65% in the past year, as of July 3, 2024.

Since its inception, the ETF has given a CAGR of 15.04%.