HDFC S & P BSE 500 ETF

The HDFC S & P BSE 500 ETF, managed by HDFC Asset Management Company Limited, aims to replicate the BSE 500 Index's performance through a passive investment strategy, emphasizing low tracking error.

With a tracking error of just 0.06%, this ETF closely follows the BSE 500 Index (TRI), ensuring investors experience minimal deviation from benchmark returns, enhancing tracking efficiency.

The portfolio is heavily weighted towards the banking sector, comprising 12.59% in banks, with top holdings including HDFC Bank Ltd. and ICICI Bank Ltd., indicating potential concentration risks.

Over the past year, the ETF has delivered a notable return of 7.7%, showcasing strong performance amidst market fluctuations, reflecting its alignment with the broader index trends.

With an expense ratio of 0.3% and an AUM of ₹18.25 Cr, the fund remains accessible while offering efficient management, supported by experienced fund managers since February 2023.