UTI Nifty 50 ETF

About UTI Nifty 50 ETF

• UTI Nifty 50 ETF is an open-ended value-oriented equity scheme that belongs to UTI Mutual Fund House.
• The stocks selected in this fund are based on the return on capital employed, price-to-earnings ratio, price-to-book ratio and dividend yield.
• UTI Nifty 50 ETF was launched on September 1, 2015.
• Ayush Jain and Sharwan Kumar Goyal are the fund managers of UTI Nifty 50 ETF.
• UTI Nifty 50 ETF has assets under management (AUM) of ₹55,961.24 crore as of June 30, 2024.
• The ETF units are listed on the NSE and BSE. One can invest in the scheme by buying units through a demat account with a registered broker.

Investment Objective & Benchmark

• The fund's investment objective is to offer returns that replicate the performance of equity stocks as part of the underlying index.
• It is benchmarked against the Nifty 50 TRI.
• UTI Nifty 50 ETF follows a style of investing, where it always invests at least 80% of its assets in large-cap stocks.
• This fund invests in large-cap stocks, which are typically considered stable and less volatile.
• The risk Metric level of UTI Nifty 50 ETF is very high with an expense ratio of 0.05%. The scheme is suited for investors looking at a long-term target.

Asset Allocation & Portfolio Composition

• The current asset allocation of the fund comprises around 85.76% in equities, 13.86% in others, and 0.4% in cash & cash equivalents.
• The scheme has invested nearly 90% of the available assets in giant and large-cap companies.
• The top 10 company holdings of the ETF make up over 56% of the asset allocation.

The top 10 Holdings in stocks of UTI Nifty 50 ETF include:

• HDFC Bank: 11.90%
• Reliance Industry: 9.94%
• ICICI Bank: 7.92%
• Infosys: 5.31%
• Larsen & Toubro: 3.89%
• Tata Consultancy Services: 3.71%
• ITC Ltd: 3.68%
• Airtel Ltd: 3.62%
• Axis Bank Ltd: 3.38%
• State Bank of India: 3.06%

Sector-wise allocation in this fund;

• Financial services: 34.3%
• Oil Gas & consumable Fuels: 12.51%
• Information Technology: 12.47%
• Automobile and Auto components: 8.01%
• Fast Moving Consumer Goods: 7.86%
• Healthcare: 4.14%
• Metals & Mining: 3.91%
• Construction: 3.89%
• Telecommunication: 3.62%
• Power: 3.1%

The ETF has delivered returns of 26.59% in the last year against the index’s 26.66% growth during the period.

Since its inception, UTI Nifty 50 ETF has given annualised returns of 14.93%.