All about top performing Exchange traded fund ( ETF )

 Exchange Traded Fund (ETF)

An Exchange Traded Fund (ETF) in India is a type of investment fund that is traded on stock exchanges, similar to individual stocks. ETFs typically track an index, commodity, bonds, or a basket of assets, providing investors with diversification and liquidity.  


Types of ETFs in India

1. Equity ETFs– Track stock indices like Nifty 50, Sensex, Nifty Next 50, etc.  

2. Debt ETFs – Invest in government or corporate bonds, like Bharat Bond ETF.  

3. Gold ETFs – Invest in gold-backed assets, allowing investors to gain exposure to gold without holding physical gold.  

4. International ETFs – Track global indices like Nasdaq 100 or S&P 500.  

5. Sectoral & Thematic ETFs - Focus on specific industries like banking, IT, or infrastructure.  


Benefits of ETFs

Diversification-  Invest in a broad range of stocks or assets.  

Lower Costs- Generally have lower expense ratios than mutual funds.  

Liquidity – Can be bought and sold on the stock exchange throughout the day.  

Transparency-  Holdings are disclosed regularly.  


How to Invest in ETFs in India? 

Through a Demat Account & Trading Account- Investors can buy and sell ETFs via stock exchanges like NSE and BSE.  

Via Mutual Fund Platforms  – Some fund houses offer ETFs through systematic investment plans (SIPs).  


Popular ETFs in India

Nippon India ETF Nifty 50

SBI ETF Nifty 50

HDFC Gold ETF

ICICI Prudential Nifty Next 50 ETF

Bharat Bond ETF


Growth in ETF Trading Volume:

The trading volume of ETFs has surged from ₹26,139 crore in FY 2016-17 to ₹1,83,676 crore in FY 2023-24, marking an increase of over 600%. This reflects growing investor confidence and the maturation of the ETF market in India.

The substantial growth in ETF assets and trading volumes underscores the increasing adoption of ETFs by both retail and institutional investors in India, driven by benefits such as diversification, cost efficiency, and ease of trading


Dominance of Nifty 50 ETFs:

Within the Equity ETF segment, Nifty 50 ETFs hold a dominant position, accounting for 95% of the total AUM in Equity ETF schemes as of March 31, 2024. This translates to an AUM of ₹2,77,471 crore for Nifty 50 ETFs. In comparison, Nifty Next 50 ETFs and Nifty Mid-cap 150 ETFs have AUMs of ₹9,628 crore and ₹2,284 crore, respectively. 


As of January 20, 2025, the top-performing Exchange-Traded Funds (ETFs) in India over the past three years are:

  1. Mirae Asset NYSE FANG+ ETF: This ETF has delivered a remarkable return of 152.54%, providing exposure to leading global technology companies.

  2. Kotak Nifty PSU Bank ETF: Focusing on public sector banks in India, this ETF has achieved a return of 140.23%.

  3. BHARAT 22 ETF: Offering a diversified portfolio of public sector enterprises, this ETF has returned 122.20%.

  4. Nippon India ETF PSU Bank BeES: This ETF, concentrating on public sector banks, has seen a return of 121.52%.

  5. ICICI Prudential Nifty Mid-cap 150 ETF: Targeting mid-cap companies, this ETF has provided a return of 72.64%.

As of February 17, 2025, here are some of the top-performing Exchange-Traded Funds (ETFs) in India, ranked by their Assets Under Management (AUM):


  1. SBI Nifty 50 ETF
    • AUM: ₹3,102.86 crore
    • Expense Ratio: 0.14%
    • 1-Year Return: 9.28%
    • Description: This ETF tracks the Nifty 50 Index, providing exposure to the top 50 companies listed on the National Stock Exchange of India
  1. Nippon India ETF Nifty PSU Bank BeES
    • AUM: ₹2,602.11 crore
    • Expense Ratio: 0.49%
    • 1-Year Return: -15.09%
    • Description: This ETF focuses on public sector banks in India, tracking the Nifty PSU Bank Index

  1. Mirae Asset NYSE FANG+ ETF
    • AUM: ₹2,743 crore
    • Expense Ratio: 0.66%
    • 3-Year Return: 152.54%
    • Description: This ETF provides exposure to leading global technology companies by tracking the NYSE FANG+ Index.

  1. BHARAT 22 ETF
    • AUM: Data not specified
    • Expense Ratio: Data not specified
    • 3-Year Return: 122.20%
    • Description: This ETF offers a diversified portfolio of public sector enterprises across various sectors
  1. ICICI Prudential Nifty Midcap 150 ETF
    • AUM: Data not specified
    • Expense Ratio: Data not specified
    • 3-Year Return: 72.64%
    • Description: This ETF targets mid-cap companies by tracking the Nifty Mid-cap 150 Index.

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