ICICIPRAMC - PSUBANKICI

About ICICI Prudential Nifty PSU Bank ETF

• ICICI Prudential Nifty PSU Bank ETF is an open-ended exchange-traded fund offered by the ICICI Prudential Mutual Fund House.

• It includes stocks of the public sector banks operating in India.

• The scheme was launched on March 15, 2023

• As of June 30, 2024, its total assets under management (AUM) stood at ₹77.58 crore.

• The ICICI Prudential Nifty PSU Bank ETF is managed by Nishit Patel, Priya Sridhar and Kewal Shah.

• One can invest in the scheme by buying the ETF units directly through a demat account with a registered broker.

• While buying directly with the AMC, units must be bought in creation unit size, which is 40,000 units and in multiples thereof.

• The ETF units can be bought and sold at the prevailing market price, just like equity stocks.

Investment Objective and Benchmark

• The investment objective of the ICICI Prudential Nifty PSU Bank ETF is to provide returns that correspond to the total return of the underlying index.
• The scheme’s performance will be measured and evaluated by benchmarking it against the Nifty PSU Bank Total Return Index (TRI), ensuring returns are compared to the total returns of this specific index.
• The ETF is ideal for those seeking long-term wealth creation through a long-term investment goal.
• For this fund, the indicative investment horizon is five years and above, which means that to potentially attain the desired returns.
• The ETF falls under the very high risk category.
• The fund does not have any exit load.
• Banks in India follow stringent regulations, limiting the risk of operational fraud.
• Since the PSU banks are backed by the government, they offer greater stability compared to the private banks.

Asset Allocation and Portfolio Composition

• The sector-wise allocation of the ICICI Prudential Nifty PSU Bank ETF shows that the fund's exposure to banks is 98.87%, while other Series 1 investments account for 1.1%.
• The ETF predominately invests in giant and large-cap companies, allocating 80% of the asset allocation to them.
• The top 10 holdings make up over 95% of the ETF’s asset allocation
• The holdings of the ICICI Prudential Nifty PSU Bank ETF include these public sector banks, along with their respective weights in the portfolio:

• State Bank of India: 32.69%
• Bank of Baroda: 16.18%
• Canara Bank: 12.65%
• Punjab National Bank: 11.82%
• Union Bank of India: 8.41%
• Indian Bank: 6.16%
• Bank of India: 4.78%
• Bank of Maharashtra: 2.07%
• Indian Overseas Bank: 1.57%
• Central Bank of India: 1.23%
• UCO Bank: 1.06%
• Punjab & Sind Bank: 0.26%

As of June 28, 2024, the ICICI Prudential Nifty PSU Bank ETF growth option achieved a CAGR of 61.6 % over the past year compared to the benchmark returns of 61.9%
The ETF has delivered a CAGR of 64.7%