SBI Nifty Private Bank ETF

About SBI Nifty Private Bank ETF

• SBI Nifty Private Bank ETF is an open-ended exchange-traded fund offered by the SBI Mutual Fund House.
• The scheme was launched on October 20, 2020.
• The ETF includes stocks of the top private sector lenders in India, including ICICI, HDFC and Axis banks.
• Harsh Sethi has been the fund manager for the SBI Nifty Private Bank ETF since its inception.
• The total assets under management (AUM) in this ETF was ₹166.52 crores as of June 30, 2024.
• Retail buyers can invest in SBI Nifty Private Bank ETF using their demat account registered with recognised brokers or financial institutions.
• Like equities, buy orders for the ETF can be placed during the usual trading hours of the National Stock Exchange.

Investment Objective & Benchmark

• SBI Nifty Private Bank ETF aims to offer returns that mirror the total returns offered by the stocks in the underlying index, subject to minor tracking errors.
• The ETF is benchmarked against the Nifty Private Bank, designed to reflect the performance of the banks from the private sector.
• With India’s GDP and infrastructural spending on the rise, the demand for borrowing is likely to maintain a steady growth trend for the banking sector.
• Private banks have offered higher profitability than the overall banking sector in recent years, indicating the efficiency of their functioning.
• SBI Nifty Private Bank ETF could be an ideal option for investors looking at a long-term goal with a decent return on their money.
• The Nifty Private Bank Total Return Index (TRI) has consistently posted stable earnings over the past few years, yielding a cumulative return of over 50% in the past five years.

Asset Allocation & Portfolio Composition

• SBI Nifty Private Bank ETF predominately invests in equity, allocating 99.54% of the funds.
• The remaining 0.46% is invested in debt, and cash.
• The ETF has invested 99.54% of the funds in the financial sector and the remaining 0.46% in others.
• Following a growth investment approach, the ETF has diversified its fund across market capitalisation – 67.22% to giant cap, 13.93% to large cap, and 14.87% to mid-cap companies. The remaining 3.98% of the funds are invested in small-cap firms.
• The top 10 company holdings in the SBI Nifty Private Bank ETF make up 99.54% of the asset allocation, as of June 2024.

List of top company holdings in the SBI Nifty Private Bank ETF :

• HDFC BANK LTD. -26.48%
• ICICI BANK LTD. -25.65%
• AXIS BANK LTD. -11.18%
• INDUSIND BANK LTD. -9.61%
• KOTAK MAHINDRA BANK LTD. -9.41%
• THE FEDERAL BANK LTD. -5.88%
• IDFC FIRST BANK LTD. -4.90%
• BANDHAN BANK LTD. -2.51%
• RBL BANK LTD. -2.38%
• CITY UNION BANK LTD. -1.67%

SBI Nifty Private Bank ETF has yielded a return of 8.44% over a year, as of June 30, 2024, compared to the benchmark index's 8.65% return during the period. Since its inception, the ETF has yielded a CAGR of 18.37%.