The HDFC Nifty Small Cap 250 ETF, managed by HDFC Asset Management Company Limited, aims to replicate the performance of the NIFTY Smallcap 250 Index, focusing on market cap weighted investments.

This open-ended scheme utilizes a tracking approach to align returns with the NIFTY Smallcap 250 Index (TRI), maintaining a tracking error of 0.16% to minimize deviation from the benchmark.

The portfolio exhibits sector diversification with notable allocations in Finance (9.57%), Pharmaceuticals (8.87%), and Capital Markets (7.82%), presenting a balanced exposure across various industries.

Over the past year, the fund has experienced a decline of -9.8%, reflecting market volatility, while its expense ratio of 0.2% remains competitive given its fund size of ₹1340.4 Cr.

Managed by experienced professionals, including Arun Agarwal and Abhishek Mor, this ETF is accessible via NSE and BSE, providing liquidity with no exit load, enhancing investor appeal.