SBI-ETF Nifty 50

About SBI Nifty 50 ETF- SETFNIF50

• The SBI Nifty 50 ETF is an open-ended exchange-traded offered by the SBI Mutual Fund house.
• The ETF includes stocks of companies from various key sectors of the Indian economy.
• The SBI Nifty 50 ETF was launched on July 20, 2015.
• The scheme's assets under management (AUM) was ₹19,3633.58 crore as of June 30, 2024.
• Ravi Prakash Sharma is the fund manager.
• Investments in SBI Nifty ETF can be through a demat account with a broker or financial institution.
• The ETF units can be bought and sold during the regular trading hours of the Indian stock market.

Investment Objective & Benchmark

• SBI Nifty 50 ETF aims to achieve returns that closely correspond to the performance of the equity securities in the underlying index.
• The scheme is benchmarked against the Nifty 50 index, comprising 50 stocks representing important sectors of the economy. The index is calculated using the free float market capitalisation method, wherein the index level reflects the total free float market.
• The Nifty 50 Index has been a stable investment option offering a return of over 20% in the past five years
• The ETF invests funds across multiple sectors, offering a shield against sectoral risks.
• SBI Nifty 50 ETF predominately trades in giant and large companies that tend to offer greater stability to the investment.
• The index rebalance is done sem-annually to factor in the performance of the stocks in the recent past.
• SBI Nifty 50 ETF is heavily invested in the financial and technology sector which are expected to maintain a strong growth trajectory in the near future.

Asset Allocation & Portfolio Composition

• The ETF has invested 99.58% of its in equity and the remaining in debt and cash.
• It has allocated funds across sectors– 33.09% to stocks from the financial segment, 14.61% to energy, 12.46% to technology, 8.02% to automobile and 7.86% to consumer staples.
• The remaining 23.96% of the funds are allocated to other sectors.
• Following a growth approach, SBI Nifty 50 ET has invested funds across market capitalisation -- 79.37% to giat cap, 10.30% to large cap and 10.33% to mid-cap companies.
• The top 10 holding companies constitute 56.41% of the asset allocation and the top 3 sectors make up 60.16% of the asset allocation.

List of 10 holding companies in the SBI Nifty 50 ETF

• HDFC Bank Ltd- 11.90%
• Reliance Industries Ltd- 9.94%
• ICICI Bank Ltd- 7.92%
• Infosys Ltd- 5.31%
• Larsen & Tourbo Ltd- 3.89%
• TATA Consultancy Services Ltd- 3.71%
• ITC Ltd- 3.68%
• Bharti Airtel Ltd. 3.62%
• Axis Bank Ltd- 3.38%
• State Bank of India- 3.06%

The ETF has offered a 26.51% return in the past year compared to the benchmark returns of 26.74% as of June 28, 2024.

SBI Nifty 50 ETF has yielded 13.39% earnings since its inception.