SBI Nifty Bank ETF

About SBI Nifty Bank ETF

• The SBI Nifty Bank ETF is an open-ended fund offered by SBI Mutual Fund House.
• The scheme invests in major banks listed on the NSE.
• SBI Nifty Bank ETF was launched on March 16, 2015.
• The ETF has assets under management (AUM) of ₹4,551.23 crore as of June 30, 2024.
• Raviprakash Sharma has been the fund manager of SBI Nifty Bank ETF since March 2015.
• The ETF units are listed on both exchanges NSE and BSE, one can invest by buying units through a broker.
• Retail investors can buy all the units directly from the demat account.

Investment Objective & Benchmark

• The fund investment objective is to provide returns that closely correspond to the total returns of the underlying index.
• It is benchmarked against the Nifty Bank Total Return Index featuring public-sector and private-sector banks in India.
• The ETF holds a portfolio that mirrors the index's constituents in the same proportion.
• The fund provides investors with exposure to a diversified portfolio of companies in the finance segment.
• The portfolio includes a mix of large-cap and mid-cap companies that are market leaders in sectors. These companies are expected to benefit from the rising consumption trends in India.
• As an index fund, it carries the risk associated with the underlying index. It is considered suitable for investors with a moderate to high-risk appetite.
• The index is usually calculated using a free-float market capitalisation method, which means only the shares available for trading are considered in the index calculation.
• The scheme offers a way to gain targeted exposure to a growing segment of the Indian market.

Asset Allocation & Portfolio Composition

• The ETF holds 99.58% of its fund in equity and 0.42% in cash.
• It predominantly invests in large and giant cap companies, allocating over 80% of the funds to them.
• Sector-wise fund allocation comprises 99.58% in the finance and 0.42% in others.
• Top 10 holdings of stocks constitute around 96.59% of this ETF’s asset allocation.

Top 10 company holdings in the ETF as of Jue 30, 2024:

• HDFC Bank: 27.47%
• ICICI Bank: 23.96%
• State Bank of India: 10.50%
• Kotak Mahindra Bank: 10.28%
• Axis Bank: 9.29%
• Indusind Bank: 5.43%
• The Federal Bank: 2.75%
• Bank of Baroda: 2.72%
• Punjab National Bank: 2.12%
• AU Small Finance Bank: 2.07%

Since its Inception, the ETF has given an annualised return of 11.63% to its investors.

In the last year the ETF has given a return of 15.47% compared to its benchmarked index which has given a return of 13.02%.