Nippon Nifty PSU Bank ETF

About Nippon India ETF Nifty PSU Bank BeES

• The Nippon India ETF Nifty PSU Bank BeES is an open-ended index exchange-traded fund offered by Nippon India Mutual Fund House.
• It includes stocks of public sectors banks in India.
• It is listed on the National Stock Exchange (NSE) under the symbol PSUBNKBEES.
• The Nippon India ETF Nifty PSU Bank BeES was launched on October 25, 2007.
• As of June 30, 2024, the total assets under management (AUM) of the fund were ₹2,759.48 crore.
• Himanshu Mange has been the fund manager since December 2023.
• The ETF units can be traded at the prevailing price during the usual market hours.
• Retail investors can buy the ETF units directly using their demat account with a registered broker.

Investment Objective & Benchmark

• The Nippon India ETF Nifty PSU Bank BeES, formerly known as Nippon India ETF PSU Bank BeES, seeks to provide returns almost equal to the overall returns of the stocks part of the underlying index.
• It is benchmarked against the Nifty PSU Bank Total Return Index (TRI) which features stocks of public sector banks.
• The fund uses a passive investment strategy to track the performance of the Nifty PSU Bank TRI.
• The fund is categorised as having a very high risk level. It is ideal for those seeking long-term capital appreciation through investments in securities.
• Public-sector banks are often considered to be more stable and less volatile than private-sector lenders.
• In a growing economy like India, the demand for financial services also witnesses an upsurge. Investment in this ETF allows investors to cash on this growth trajectory.

Asset Allocation & Portfolio Composition

• The Nippon India ETF Nifty PSU Bank BeES’ asset allocation primarily consists of 95% to 100% in securities covered by the Nifty PSU Bank Index.
• Additionally, 0% to 5% is allocated to money market instruments with a maturity of up to 91 days, including Tri-Party Repo on G-Secs or T-Bills, as well as cash and cash equivalents.
• The portfolio disclosures of the Nippon India ETF Nifty PSU Bank BeES as of June 30, 2024, show that 66.14% of the assets are allocated to PSUs, 32.66% specifically to SBI, and 0.1% to CCIL.
• Top 10 company holdings make up 95.46% of the ETF’s asset allocation.

The fund’s top 10 holdings on the same date, with their respective weights in the portfolio, are as follows:

• State Bank of India: 32.66%
• Bank Of Baroda: 16.17%
• Canara Bank: 12.65%
• Punjab National Bank: 11.81%
• Union Bank of India: 8.41%
• Indian Bank: 6.16%
• Bank of India: 4.77%
• Bank of Maharashtra: 2.07%
• Indian Overseas Bank: 1.57%
• Central Bank of India: 1.23%

As of June 28, 2024, the Nippon India ETF Nifty PSU Bank BeES has achieved a one-year compound annual growth rate (CAGR) of 79.76% compared to the benchmark index’s return of 80.81%.

Since its inception, the ETF has delivered an annualised return of 7.15%.