HDFC Nifty Banking ETF

The HDFC Nifty Banking ETF, managed by HDFC Asset Management Company Limited, aims to replicate the total returns of the NIFTY Bank Index, focusing on passive investment strategies.

This ETF employs a passive tracking approach, with a benchmark of the NIFTY Bank Index (TRI), ensuring minimal tracking error of just 0.03%, enhancing investment efficiency.

The portfolio is heavily concentrated in the banking sector, with top holdings including HDFC Bank (28.5%) and ICICI Bank (24.4%), indicating significant concentration risk within a single industry.

Over the past year, the fund has delivered impressive returns of 16.3%, with a 3-year CAGR of 11.8% and a 5-year CAGR of 15.7%, showcasing consistent performance across periods.

With a fund size of ₹2639.6 Cr and a low expense ratio of 0.16%, the ETF is accessible and cost-effective, managed by experienced professionals since 2020 and 2023.