SBI Nifty IT ETF

About SBI Nifty IT ETF

• The SBI Nifty IT ETF is an open-ended fund offered by SBI Mutual Mutual Fund House
• It invests in companies operating in India’s IT sector.
• SBI Nifty IT ETF was launched on October 19, 2020.
• The ETF has assets under management (AUM) at ₹85.12 crore as of July 31, 2024.
• Harsh Sethi has been the fund manager of SBI Nifty IT ETF since its inception.
• The ETF units are listed on both exchanges NSE and BSE.
• One can invest by buying units through a demat account with a registered broker.

Investment Objective & Benchmark

• The fund’s investment objective is to provide returns that closely correspond to the total returns of the benchmark index, subject to tracking errors.
• It is benchmarked against the Nifty IT Total Return Index.
• The Nifty IT Index comprises major IT companies 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 information technologies and software segment.
• The portfolio includes a mix of large-cap and mid-cap companies that are market leaders in the sector.
• It is considered suitable for investors with a moderate to high-risk appetite, looking for long-term capital appreciation by investing in the consumption theme.
• The IT sector is one of largest exporters in the Indian economy thus limiting the investors’ exposure to domestic risks.

Asset Allocation & Portfolio Composition

• The ETF holds 99.53% of its fund in equity and 0.47% in cash.
• The ETF's fund allocation by market capitalisation is as follows: 67.22% in giant-cap stocks, 13.93% in large-cap stocks, 14.87% in mid-cap stocks and 3.98% in small-cap stocks.
• Sector-wise fund allocation in ETF comprises 99.53% in the IT Sector and 0.42% in others.
• The top 10 holdings constitute 78.26% of the ETF’s asset allocation

Here’s a list of 10 company holdings in the ETF:

• Infosys Ltd: 26.95%
• Tata Consultancy Services Ltd: 24.75%
• HCL Technologies Ltd: 9.67%
• Tech Mahindra Ltd: 9.61%
• Wipro Ltd: 8.77%
• LTIMindtree Ltd: 5.97%
• Persistent Systems Ltd: 5.36%
• Coforge Ltd: 4.35%
• Mphasis Ltd: 2.47%
• L&T Technology Services Ltd: 1.63%

In the last year, the ETF has given a return of 24.51% compared to its benchmarked index’s 25.01% as of July 31, 2024.

Since its inception, the ETF has given an annualised return of 17.26% to its investors.