The Nippon India Nifty Auto ETF, managed by Nippon Life India Asset Management Limited, follows a passive investment strategy aimed at tracking the Nifty Auto TRI index effectively.

This ETF replicates the Nifty Auto TRI by investing in the underlying securities in the same proportions, ensuring minimal tracking error of just 0.04%.

The portfolio is heavily concentrated in the automobiles sector, with top holdings like Mahindra & Mahindra Limited constituting 24.5% and Maruti Suzuki India Limited at 16.9%, presenting potential concentration risks.

In terms of performance, the fund has shown a robust one-year return of 16.7% and an impressive three-year CAGR of 29.0%, highlighting its strong growth trajectory.

With a fund size of ₹357.99 Cr and a low expense ratio of 0.22%, the ETF is accessible and cost-efficient, managed by experienced fund manager Jitendra Tolani since February 2025.