The Kotak IT ETF, managed by Kotak Mahindra Asset Management Company, aims to replicate the NIFTY IT Index's composition, providing investors with sector-specific exposure to the technology sector.

This open-ended fund utilizes a replication strategy to track the NIFTY IT TRI, ensuring minimal tracking error of just 0.05%, enhancing its efficiency in mirroring index performance.

With a substantial focus on large-cap IT stocks, the portfolio is heavily weighted towards top holdings like Infosys (29.3%) and TCS (21.7%), reflecting a concentrated risk in the IT sector.

Despite a challenging year with a 1Y return of -18.8%, the fund has shown resilience with a 3Y CAGR of 9.7%, indicating potential recovery and growth in the technology sector.

The fund, with an AUM of ₹383.0 Cr and an expense ratio of only 0.09%, offers competitive operational efficiency, making it accessible for investors looking to capitalize on the IT industry's growth.