Motilal BSE Quality ETF

About Motilal Oswal S&P BSE Quality ETF

• Motilal Oswal S&P BSE Quality ETF is an open-ended fund managed by Motilal Oswal Asset Management Company

• The index includes stocks of companies that exhibit high-quality characteristics.

• Motilal Oswal S&P BSE Quality ETF was launched on August 22, 2022.

• The assets under management of ETF Stood at ₹19.46 crore as of June 30, 2024.

• Swapnil Mayekar and Abhiroop Mukherjee are the fund managers.

• The Motilal Oswal S&P BSE Quality ETF has a lower expense ratio due to its passive management strategy.

• The ETF is listed on both stock exchanges, NSE and BSE.

• Investors can buy/sell units of the scheme in a round lot of 1 unit and in multiples thereafter directly with a mutual fund broker or their demat account.

Investment Objective & Benchmark

• The objective of the Motilal Oswal S&P BSE Quality ETF is to offer returns replicating the performance of equity stocks part of the S&P BSE Quality Index.
• It is benchmarked against S&P BSE Quality TRI focusing on companies with high-quality attributes, including strong financial metrics and stable earnings.
• The ETF aims to capture companies that are more resilient to economic downturns and have growing operational fundamentals.
• The scheme offers diversification of funds in companies across key sectors of the Indian economy.
• The risk profile level of ETF is very high. It is suitable for those looking at a long-term goal of wealth creation.
• The ETF offers diversification within the quality segment of the market, reducing risk compared to investing in individual stocks.

Asset Allocation & Portfolio Composition

• The fund’s asset allocation comprises around 99.76% in equities and 0.24% in cash & cash equivalents.
• The ETF invests assets across market capitalisations – 46.61% in giant cap, 20.73% in large cap, 23.6% in mid-cap, 8.86% in small cap, and 0.19 in tiny cap companies.
• Top 10 company holdings constitute 60.27% of the asset’s allocation.

Top holding of stocks in ETF includes:

• Bharat Electronics Limited: 7.68%
• Adani Power Limited: 6.59%
• Britannia Industries Limited: 5.92%
• Bajaj Auto Limited: 5.83%
• Coal India Limited: 5.41%
• Nestle India Limited: 5.32%
• CG Power and Industrial Solutions Limited: 5.21%
• Infosys Limited: 5.11%
• Tata Consultancy Services Limited: 5.07%
• Bharat Petroleum Corporation Limited: 5.03%

Top 5 Sector-wise fund allocations:

• IT- Software: 12.81%
• Food Products: 11.24%
• Electrical Equipment: 9.22%
• Pharma & Biotechnology: 9.12%
• Aerospace & Defence: 7.68%

Since its inception, the ETF has given an annualised return of 35.59%.

The scheme has delivered 51.34% in the last year to its investors.