The HDFC Nifty Private Bank ETF, managed by HDFC Asset Management Company Limited, aims to replicate the total returns of the NIFTY Private Bank Index, pursuing a passive investment strategy.

This ETF employs a tracking approach to closely follow the NIFTY Private Bank Index (TRI), ensuring minimal tracking error of just 0.02%, enhancing its replication efficiency.

The portfolio is heavily concentrated in the banking sector, with top holdings like HDFC Bank Ltd. (21.5%) and ICICI Bank Ltd. (21.0%), reflecting significant concentration risk within a single industry.

Over the past year, the fund has delivered a return of 14.0%, with a 3-year CAGR of 9.9%, indicating robust performance amidst market dynamics and a stable risk-return profile.

With an AUM of ₹320.7 Cr and a low expense ratio of 0.15%, the fund is accessible and cost-effective, managed by experienced professionals since late 2022 and early 2023.