ICICIPRAMC - ICICITECH ETF

About ICICI Prudential Nifty IT ETF (ITIETF)

• The ICICI Prudential Nifty IT ETF (exchange-traded fund) is offered by the ICICI Prudential Mutual Fund house.
• It tracks the performance of 10 prominent Indian IT companies listed on the NSE.
• The fund, traded under the exchange symbol ITIETF, has been in operation since its inception on August 17, 2020.
• As of June 30, 2024, the total assets under management (AUM) in this ETF was ₹450.46 crores as of June 30, 2024.
• Nishit Patel is the fund manager for the ETF.
• Investment in this ETF can be made via a demat account with a registered broker.
• ICICI Prudential Nifty IT ETF units can be bought and sold during the usual trading hours of the stock market.

Investment objective and benchmark

• The ICICI Prudential Nifty IT ETF’s investment goal is to generate returns that closely match the underlying index’s overall return. However, there can be no assurance or guarantee that the scheme's investment goal will be met.
• The ETF is benchmarked against the Nifty IT Index.
• The ICICI Prudential Nifty IT ETF falls in the high-risk investment category. Usually, sector-specific exchange-traded funds (ETFs), such as ICICI Prudential Nifty IT ETF, which focuses on the IT sector, may be vulnerable to market volatility as well as risks related to the specific sector.
• In this case, changes in technology or regulatory challenges may impact the price. While high-risk investments have the potential for long-term and larger gains, they also entail higher volatility and potential losses.
• The IT sector has been one of the best-performing industries in India in recent years. With rapid technological advancement, the sector is likely to continue its growth momentum in future.
• The sector is also one of the biggest exporters in India, limiting its risk to domestic factors.

Asset allocation and portfolio composition

• The ICICI Prudential Nifty IT ETF has a concentrated portfolio with carefully picked IT sector constituents, indicating a targeted investment approach to seize sector-specific development opportunities.
• The scheme has allocated 99.61% of the available funds to investment in equity securities. The remaining 0.39% is invested in cash and debt instruments.
• The equity allocation has invested entirely in securities of technology companies registered on the Indian stock exchanges.
• The fund has allocated assets across companies with different market capitalisations. The ETF has allocated 68.10% of the available assets to giant cap, 15.81% to large cap, 11.85% to mid-cap, 4.24% to small cap and 0.01% to tiny cap companies.
• The top 10 company holdings make up 99.61% of the ETF.

As of July 16, 2024, the top 10 holdings of the ICICI Prudential Nifty IT ETF with their portfolio weight in percentage are as follows:

• Infosys: 26.97%
• Tata Consultancy Services: 24.77%
• HCL Technologies: 9.68%
• Tech Mahindra: 9.62%
• Wipro: 8.78%
• LTIMindtree: 5.97%
• Persistent Sys: 5.37%
• Coforge: 4.35%
• Mphasis: 2.47%
• L&T Technology: 1.63%

The ICICI Prudential Nifty IT ETF’s performance across various periods has been impressive. As of July 16, 2024, over a 1-month period, the ETF has provided returns of 13.16%, outperforming its benchmark, the Nifty IT TRI, which achieved 12.54%.

• The ETF has provided annual returns of 28.83% over the past year against the Nifty IT TRI’s returns of 28.34%.
• Since its inception on August 17, 2020, the ICICI Prudential Nifty IT ETF has provided a CAGR of 23.54%.