HDFC Nifty PSU Bank ETF

The HDFC Nifty PSU Bank ETF, managed by HDFC Asset Management Company Limited, aims to replicate the NIFTY PSU Bank Index (TRI) through a passive investment strategy, focusing on long-term returns.

This ETF utilizes a tracking approach to closely follow the benchmark, NIFTY PSU Bank Index (TRI), with a minimal tracking error of 0.08%, ensuring effective index replication.

The fund's portfolio is heavily concentrated in the banking sector, with State Bank of India comprising 32.8% of holdings, reflecting significant sector skew and potential concentration risk.

In the past year, the ETF has delivered impressive performance, boasting a return of approximately 30.0%, showcasing its effectiveness in capturing market movements within the PSU banking sector.

With a fund size of ₹30.2 Cr and an expense ratio of 0.35%, the ETF is positioned for efficient management, while the experienced fund managers bring a combined 33 years of expertise to the table.