HDFC Nifty PSU Bank ETF

The HDFC Nifty PSU Bank ETF, managed by HDFC Asset Management Company Limited, is an open-ended, passive scheme aiming to mirror the performance of the NIFTY PSU Bank Index (TRI).

This ETF employs a tracking strategy focused on the NIFTY PSU Bank Index, ensuring low tracking error at 0.08%, which enhances its efficiency in replicating index returns over time.

The portfolio is heavily concentrated in the banking sector, with top holdings including State Bank of India at 34.2%, Bank of Baroda at 14.7%, and Canara Bank at 11.9%, revealing significant concentration risk.

Over the past year, the fund has delivered a return of 8.2%, indicating a positive performance trend, while the absence of longer-term CAGR data limits deeper performance analysis.

With an AUM of ₹26.04 Cr and a low expense ratio of 0.35%, this ETF offers cost-effective exposure to the PSU banking sector, managed by experienced professionals Arun Agarwal and Abhishek Mor.