Motilal AMC - Molowvol

About Motilal Oswal S&P BSE Low Volatility ETF

• Motilal Oswal S&P BSE Low Volatility ETF is an exchange-traded fund offered by Motilal Oswal Mutual Fund House.
• The ETF was launched on March 23, 2022.
• The ETF offers investors exposure to BSE-listed stocks that have shown lower volatility in comparison to the broader market.
• As of June 30, 2024, the total assets under management (AUM) in this ETF was ₹61.37 crores as of June 30, 2024.
• Swapnil Mayekar and Rakesh Shetty are the fund managers.
• Investment in Motilal Oswal S&P BSE Low Volatility ETF can be made through a demat account registered with a recognised broker.
• Investors can place buy orders for the ETFs during the usual trading hours.

Investment Objective & Benchmark

• Motilal Oswal S&P BSE Low Volatility ETF mirrors the total returns of stocks represented by the underlying index.
• The ETF is benchmarked against the S&P BSE Low Volatility Index which tracks the performance of 30 companies with the lowest volatilities in the BSE LargeMidCap.
• Investment in low-volatility stocks offers stable earnings and cash flow. While investments in this ETF may not always outperform their peers during bullish runs, it's better equipped to handle turbulence.
• The ETF gives investors exposure to diversified low-volatility stocks across sectors. This diversification helps in mitigating specific company or sector risks.
• This ETF is passively managed, offering lower expense ratios compared to actively managed funds. This can lead to cost savings for investors over the long term.

Asset Allocation & Portfolio Composition

• Motilal Oswal S&P BSE Low Volatility ETF allocates 99.9% of the funds to equity whereas the remaining 0.10% is invested in debts and cash.
• The ETF has invested 26.85% of the funds in consumer staples, 13.7% in financial 10.24% in materials and 9.86% in automobile sectors. It has also allocated 9% to the healthcare sector and the remaining in other sectors.
• Motilal Oswal S&P BSE Low Volatility ETF invests funds across market capitalisations – around 79.37% in giant-cap, 10.3% in large-cap companies and 10.33 % in mid-cap firms.
• The top 10 equity holdings in Motilal Oswal S&P BSE Low Volatility ETF constituted 37.44% of the assets, as of May 2024.

List of the top 10 company holdings of Motilal Oswal S&P BSE Low Volatility ETF along with percentage contributions:

• Honeywell Automation India Limited- 4.38%
• Bharti Airtel Limited- 3.9%
• ICICI Bank Limited- 3.83%
• Maruti Suzuki India Limited- 3.77%
• Britannia Industries Limited- 3.73%
• ITC Limited- 3.69%
• Asian Paints Limited- 3.68%
• Hindustan Unilever Limited- 3.66%
• Dabur India Limited- 3.4%
• Pidilite Industries Limited

Motilal Oswal S&P BSE Low Volatility ETF yielded a return of 33.98% in the past year, as of May 31, 2024.
Since its inception in March 2022, the ETF has posted a CAGR of 22.38%.