UTIAMC - NIFITETF

About UTI NIFTY IT ETF

• The UTI NIFTY IT ETF (exchange-traded fund) is an open-ended scheme, which tracks NIFTY IT TRI (total return index).
• This ETF, mainly comprising the stocks of top IT companies aims to match the return of the NIFTY IT index TRI, subject to tracking error.
• The ETF came into existence on January 25, 2024.
• As of June 30, 2024, its assets under management (AUM) stood at ₹6.29 crore.
• Sharwan Kumar Goyal and Ayush Jain are the fund managers of the ETF.
• The ETF offers an opportunity to invest in top IT stocks. The ETF has nil exit load— the amount investors pay to redeem the units within a specified period.
• The UTI NIFTY IT ETF offers an opportunity to investors to bet on the high growth sector without worrying too much about each stock’s fundamentals. However, the ETF has been categorised as a ‘high risk’ scheme.
• The ETF can be traded during market hours on the NSE.
• Its net asset value stood at ₹399 apiece and marketcap at ₹5.48 crore as of July 15, 2024.

Investment objective & Benchmark

• UTI NIFTY IT ETF trades on the NSE and attempts to closely mirror the performance of the NIFTY IT TRI. Heavyweight IT companies have a greater impact on the ETF's performance. The expense structure of the ETF depends on the different plans.
• A retail investor with an active Demat account can invest in the UTI NIFTY IT ETF by placing orders through a broker or any online trading platforms.
• In the last three months, the ETF has generated a return of 7.89% against a 7.02% return of the NIFTY IT TRI.

Asset Allocation & Portfolio Composition

IT heavyweights such as Infosys, TCS and Tech Mahindra hold maximum weightage in the ETF.

Top holdings (as of May 31, 2024)

• Infosys: 27.12%
• TCS: 25.37%
• Tech Mahindra: 10.57%
• HCL Tech: 9.56%
• Wipro: 8.38%
• LTIMindtree: 5.85%
• Persistent Systems: 4.77%
• Coforge: 4.12%
• Mphasis: 2.57%
• L&T Technology Services: 1.67%