Motilal BSE Healthcare ETF

About Motilal Oswal S&P BSE Healthcare ETF

• Motilal Oswal S&P BSE Healthcare ETF is an open-ended scheme offered by Motilal Oswal Asset Management Company.
• This ETF invests in healthcare companies listed in India.
• The Motilal Oswal S&P BSE Healthcare ETF was launched on July 29, 2022.
• The Asset Under Management of the Motilal Oswal S&P BSE Healthcare ETF stood at ₹14.97 crore as of July 31, 2024.
• The total expense ratio of the ETF is 0.22%.
• Swapnil Mayekar and Rakesh Shetty are the fund managers of the Motilal Oswal S&P BSE Healthcare ETF.
• As the ETF units are listed on the NSE and BSE, one can invest by buying units through a broker. All the units can be purchased by Retail investors directly from the demat account of their choice.

Investment Objective & Benchmark

• The primary objective of the ETF is to provide returns that closely correspond to the total returns of the underlying index, subject to tracking error.
• It is benchmarked against the Nifty Healthcare Index, which features leading companies from the healthcare sector in India.
• The index includes companies from various sub-sectors such as pharmaceuticals, biotechnology, hospitals, diagnostics and medical devices.
• The ETF is sector-specific, focusing exclusively on the healthcare industry. This makes it a thematic investment, offering exposure to a sector that is considered essential, especially during economic downturns and health crises.
• The profile risk level of the ETF is very high, making it suitable for those looking at long-term wealth creation goals.
• It offers a cost-effective alternative to investing in comparison to buying individual stocks.

Asset Allocation & Portfolio Composition

• The ETF holds 99.20% in equity investments and 0.80% in cash & cash equivalent.
• Motilal Oswal S&P BSE Healthcare ETF invests 99.20% in the healthcare sector.
• Top 10 company holdings constitute around 58.9% of the ETF’s asset allocation.

Here’s a list of top 10 company holdings in the ETF:

• Sun Pharmaceutical Industries Ltd. - 15.7%
• Cipla Ltd. - 7.0%
• Dr. Reddy's Laboratories Ltd. - 7.0%
• Max Healthcare Institute Ltd. - 5.8%
• Apollo Hospitals Enterprise Ltd. - 5.6%
• Divi's Laboratories Ltd. - 5.3%
• Lupin Ltd. - 3.9%
• Aurobindo Pharma Ltd. - 3.4%
• Zydus Lifesciences Ltd. - 2.7%
• Torrent Pharmaceuticals Ltd. - 2.5%

Since its Inception, the ETF has given an annualised return of 33.38%.

In the last year, Motilal Oswal S&P BSE Healthcare ETF has given a return of 46.26% compared to the benchmark returns of 46.70%, as of July 31, 2024.