ETF Review

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ETF Review – September 2020

October 26, 2020

ETF Review

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Corpus of Gold ETF (Rs cr) Vs. Prices of Gold (INR):

Snapshot:

Category / Scheme Corpus (Rs Crs)

(Sept 2020)

Monthly Performance Return (%)

(As of Sept 30)

Total Volume in Sept 2020 on NSE/BSE

(Rs Crs)

Change in volume over a month

(%)

Short Term Outlook

(0 to 3 months)

Long Term Outlook (3-12 months)

Gold ETFs Category 13,590 -3.32 847 -49.78 Neutral Positive

Nippon India ETF Nifty BeES 2,699 -3.40 347 -16.41 Neutral Neutral

SBI ETF Sensex 30,319 -3.52 46 -13.12 Neutral Neutral

Nippon India ETF Bank BeES 5,307 -12.55 417 -2.00 Negative Neutral

CPSE 9,929 -13.79 360 -55.78 Neutral Neutral

Bharat 22 ETF 4,638 -13.15 153 -13.01 Neutral Neutral

The month gone by:

Corpus: The corpus of the Gold ETF category jumped 2.1% from Rs 12,322cr in August to Rs 12,581cr in Sept 2020; aided by strong net inflows. Geopolitical and economic uncertainty remains supportive for gold investment and with real rates near or at all-time lows. Globally, the cost of holding gold remains low. The corpus of Other ETFs category was marginally down by 0.70% during the month of September 2020 on the back of profit booking in Indian market amid weak global cues, surge in coronavirus cases and uncertainty over economic recovery. Fund flow: The overall ETF category witnessed net inflows of Rs 4,112cr during the month of Sept. Gold ETFs continue to attract sizeable inflows of Rs 597cr in Sept amid uncertainty and economic disruption with rising cases of coronavirus in India and concerns over lockdown in Europe. Safe haven metal’s appeal has remained range bound since end of August month due to concerns over economic recovery, uncertainty of U.S. fiscal stimulus and mixed cues on development of coronavirus vaccine; allocation in gold has increased globally. Other ETF category saw decent inflows of Rs 3,515cr; much of which was due to inflows in IT sector ETF NFO (about Rs 1200cr). Inflow in thematic equity indices were subdued in Sept given profit booking witnessed across all spectrum of equity category.

Traded Volume: The total traded turnover of ETF space in Sept has decreased by 9.63% on m-o-m basis. Total trading volumes of Gold ETF on NSE stood at Rs 846cr and the Other ETF Category witnessed traded volumes of Rs 4,041cr higher than Rs. 3,722cr in August. However, trading volumes in Gold ETFs decreased by 50% on m-o-m basis triggered by correction in price of gold and some profit booking while Other ETF category saw increase in trading volume by 8.56%. Increase in trading volumes of Other ETF category were offset by the sharp decrease in trading volumes of Gold ETF, which led to overall trading volume decrease in ETF space. Among equity ETFs, highest volumes were seen in Nippon Indian Banking ETF (Rs 417cr) followed by Nippon India ETF Nifty BeEs (Rs 347cr). Kotak Banking ETF, Motilal Oswal most shares NASDAQ 100 100 ETF and ICICI Pru IT ETF also saw decent trading volumes.

Tracking Error: Tracking error for ETF have started to moderate since June months after witnessing high volatility in past few months amid pandemic. In Other ETF category, the tracking error ranged from 0.02% to 2.65%. Tracking Error for Nippon India ETF Nifty BeES, SBI Sensex ETF, Nippon India ETF Bank BeES and CPSE ETF was at 0.017%, 0.136%, 2.606% and 1.906% respectively.

Prices of Gold: Gold which was trading at all time high above $2000 per ounce in Aug fell below $1900 per ounce level in Sept, however, gold has delivered a strong performance; up by 25.4% in US-dollar terms (till Sept 30). Weak macroeconomic indicators, geo-political tensions, uncertainty over economic recovery and very low interest rates augured well for the gold prices. Gold prices witnessed correction from its record high in early Aug and it has been tumbled over 7.9% (till Sept 30) from its record high (in U.S. dollar terms), due to profit booking amid hopes on positive developments in coronavirus cases, reopening of economies and business activities. A rallying U.S. dollar index recently and a rebound in global stock markets negatively impacted Gold prices.

Equity Markets: Indian market witnessed some profit booking due to negative sentiments around increase in fresh Covid-19 cases in developed markets (fear of re-imposition of lockdown), heavy sell-off in tech heavy U.S. indices and uncertainty over U.S. stimulus package. Hopes over coronavirus vaccine development and further ease in lockdown restrictions supported the Indian market. In the month of September 2020, the Sensex and Nifty 50 fell by 1.45% and 1.23% respectively.

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PSU –Thematic: CPSE & Bharat 22; PSU Bond: Bharat Bond ETF

Net flows - Gold ETFs:

Net flows - Other ETFs:

Trend in the AUM: The assets under management of the overall Exchange Traded Funds (comprising Gold, Equity and Liquid ETFs) marginally fell by 0.62% MoM in Sept 2020 to Rs 218,825cr (vs Rs 220,184cr in Aug 2020). The fall in AUM was majorly on account of capital depreciation in ETFs space as benchmark witnessed correction during September on the back of weak global cues, valuation concerns and uncertainty over economic recovery as real GDP contracted by 23.9% in Q1: 2020-21. However, fund flows has relatively increased compared to Aug due to uncertainty about the nature and extent of the impact of coronavirus outbreak on businesses resulted in investors avoiding stock picking; and attracted flows in passively managed instrument like ETFs.

The corpus of the Gold ETF category was at Rs 13,590cr (up 0.64% m-o-m) in Sept 2020. Concerns of global economic slowdown, political uncertainties and dovish stance by central banks globally in response to COVID crisis worked in favour of gold prices in FY21. Gold ETFs saw net inflows of Rs 597cr in Sept 2020. Gold ETFs has been one of the better performing asset-class as investors preferred to park money in Gold ETFs in these trying times. Low and negative interest rates in global markets boosted the appeal of precious metals. However, recent months have not been in the favour of gold prices as international gold prices fell from US$ 1,976.73 on Aug 31 to US$ 1908.54 on Sep 30 (LBMA PM prices). The prices of gold in India were down by 1.71% m-o-m to Rs 50,528 in Sept 2020 (IBJA prices). Gold price after reaching record high saw sell-off in Aug and Sept due to profit booking on the backdrop of positive economic data and positive developments around coronavirus vaccine.

EPFO (Retirement Fund Body) have invested Rs 86,966cr in ETFs (Sensex and Nifty ETF, CPSE and Bharat 22 ETF) till Sep 2019. In 2019-20, EPFO invested nearly ₹31,000 crore in the equity market. The EPFO has been investing in ETFs since August 2015. Its allocation to ETF increased from 5% of its incremental flows to 15% in 2018. EPFO has announced that it will sell off ETFs worth Rs. 9000cr to meet the shortfall of the promised interest rates and pass on the gains to EPFOs subscribers. Of the units to be redeemed, ETFs worth Rs. 7,900cr are with SBI MF and balance with UTI MF. The growth in the ETF AUM in the last three years was mainly supported by EPFO’s investment and lately divestment routes adopted by the Government. Surge in inflows is a positive indicator of the gaining acceptance of ETFs; given the narrowing alpha of actively managed funds.

Nifty & Sensex ETF together constitute almost ~65% of the total ETF AUM as of Sept 2020. Among the sectoral ETF, banking sector hold much of the AUM. Gold ETF and Global ETF saw highest m-o-m change in corpus driven by higher inflows in search of asset class diversification and geographical diversification. Both the global ETF Nasdaq 100 ETF and Hangseng ETF saw some significant traction this year. New NFOs in sectoral-based ETF lifted the corpus. Factor based ETF also saw some attracted investment in last couple of months.

Trend in the Fund Flows: ETF category saw net inflow of Rs 4,112cr; up from Rs 2,630cr in Aug. ETF inflows were higher on the back of NFO proceeds worth Rs. 1,200cr of IT Sector ETF as it gained decent traction from investors. Gold ETFs continue to attract sizeable inflows of Rs 597cr amid uncertainty and economic disruption with rising cases of coronavirus in India and fears of lockdown in Europe. After witnessing a net outflow of Rs 412cr in FY19, Gold ETF garnered cumulative net inflow of Rs 1,613cr in FY2020. In FY 2021 till Sept, gold ETF space saw net inflows of Rs 4,466cr.

The Other ETFs category witnessed net inflows of Rs 3,515cr during September. Inflow in benchmark and thematic indices were subdued in Sept given profit booking witnessed across all spectrum of equity category.

ETF Review

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Trend in investors’ folios:

Trend in the Folios in ETFs: Gold ETFs category saw a rise of 13,057 folios in Sept 2020. During FY21 (till Sept), folio for Gold ETF rose by 44% or 2.33 lakh. The Other ETFs category witnessed a sharp rise in the number of folios given the market condition; up by 3.66lakh to 28.68 lakh in Sept 2020. Open ended Equity funds categories has seen constant rise in the number of folios. The total number of equity folios (Equity + ELSS) stood at 6.39cr while the overall folios of the MF industry stood at 9.33cr in Sept.

Addition / Deduction in number of folios:

Category Total no of folios as on

Sept 2020

Addition / Deduction in number of folios

In last quarter In last 1 year

Overall MF Folios 9.33cr +0.17cr +0.77cr

Equity Funds 6.39cr +0.01cr +0.38cr

Gold ETFs 7.59 lakh +1.27 lakh +4.00 lakh

Other ETFs 28.68 lakh +6.04 lakh +16.91 lakh

Trend in the trading volumes: The total traded volumes in the Gold ETF category on NSE during Sept 2020 stood at Rs 846cr against the Rs 1,686cr seen in the month of Aug 2020. Nippon India Gold ETF, continues to remain the most actively traded gold ETFs - monthly turnover close to Rs 464cr during in Sept 2020, which accounted for 55% of the overall category turnover during the month. This was followed by HDFC Gold ETF and SBI Gold ETF, which saw turnover of Rs 123cr and Rs 120cr respectively during Sept 2020.

The Other ETFs category witnessed total traded volumes stood at Rs 4,041cr during Sept; increased by 8.56% from previous month. The Broader Equity Indices ETFs saw turnover of Rs 798cr in the last month persistently decreasing since March 2020 and less than half of the total turnover observed in the month of March when markets were volatile. The highest volumes were seen in Nippon India ETF Nifty BeES, SBI Nifty ETF and Kotak Nifty ETF and ICICI Pru Nifty ETF. Banking sector ETFs saw volumes of Rs 800cr with almost the entire volumes coming through Nippon India ETF Bank BeES about 52% and Kotak Banking ETF about 18%. Fixed income ETFs saw volumes of Rs 2,292cr sharp higher than previous month. Bharat Bond 2023 saw decrease in participation as seen by sharp fall in turnover during Sept (down 62% m-o-m) and it was just 10% of the trading volumes seen in the month of March 2020.

CPSE ETF, which comprises scrips of 12 PSUs — NTPC, Coal India, IOC, ONGC, PFC, Bharat Electronics. Bharat 22 ETF is collectively comprised of 22 stocks of Central Public Sector Enterprises (CPSE), Public Sector Banks and private companies which are Strategic Holding of Specified Undertaking of Unit Trust of India (SUUTI), saw a fall in turnover during the month. Factor based ETFs like Quality ETFs, Value and Low Volatility ETF usually have very low trading volumes. These ETFs are considered more from long term Investment prospective and not for riding short term triggers in the market.

Performance – Gold ETFs:

Scheme Name Corpus (Rs crs)

Sept 2020 Expense Ratio (%)

Trailing Returns (%) as on 30.09.2020 Tracking

Error 1 Month Absolute

3 Month Absolute

6 Month Absolute

1 Year CAGR

3 Year CAGR

5 Year CAGR

Aditya Birla SL Gold ETF 251 0.51 -3.34 3.90 13.51 31.21 18.04 12.69 1.110

AXIS Gold ETF 313 0.53 -3.23 3.76 13.19 30.53 18.05 12.06 1.099

HDFC Gold ETF 1,923 0.59 -3.30 3.63 13.38 30.44 17.66 12.66 1.120

ICICI Pru Gold ETF 1,835 0.65 -3.32 3.59 12.98 30.14 17.72 12.37 1.103

IDBI Gold ETF 93 0.35 -3.31 3.88 13.04 30.09 18.09 12.90 1.090

Invesco India Gold ETF 73 0.45 -3.29 3.66 13.40 31.11 18.07 12.71 1.124

Kotak GOLD ETF 1,446 0.55 -3.30 3.64 13.35 30.57 17.97 12.61 1.114

Nippon India ETF Gold BeES 5,129 0.79 -3.35 3.59 13.27 30.64 17.81 12.61 1.096

Quantum Gold Fund (G) 129 0.78 -3.37 3.55 13.22 30.53 17.80 12.52 1.110

SBI ETF Gold 1,792 0.51 -3.31 3.65 13.34 30.97 17.89 12.59 1.120

UTI-Gold ETF 597 1.13 -3.41 3.53 13.14 30.17 17.93 12.74 1.130

Source: NAVIndia

ETF Review

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Nippon India ETF Nifty BeES:

NAV is rebased to reflect unit split

Low correlation between the Corpus of ‘Nippon India ETF Nifty BeES’ and ‘Nifty Index’:

SBI ETF Sensex:

Nippon India ETF Nifty BeES: Nippon India ETF Nifty BeES posted losses of 3.40% during the month of Sept 2020 and the corresponding benchmark - Nifty 50 TRI lost 3.41%. The net turnover of Nippon ETF Nifty BeES on NSE in Sept was at Rs 347cr.

ETFs are suited for conservative investors who want to follow and are willing to get returns in line with index returns. First time investors, who wish to enter into equity market, can consider opting for the index ETF route. Ideal for those investors who would like to participate in India’s growth story by investing in well-diversified portfolio of well-known large cap companies comprising the index

Investing through staggered investment mode like DIYSIP will further help them to accumulate cost averaging units over periods. However, investors have to own a demat account and a broker’s account to participate in the investment process of ETF transaction. Market has witnessed small correction in Sept amid surge in coronavirus cases and fears of lockdown in developed markets, however, Indian market has almost reached its all time high and global equity markets have also recovered meaningfully as government across the world and central banks have announced stimulus packages to support their economy. This unprecedented liquidity has directly helped financial markets, with equities seeing swift and unusual rise (like the crash).

In the near term, markets will stay volatile driven by emotions dictated by U.S. election, U.S. stimulus, news flows and fund flows. Various valuation parameters after dropping to an “attractive” zone in April 20 have moved into the “expensive” zone. Investors need to be cautious at current levels given the combination of higher valuation in some segments and high uncertainty over FY21 earnings. Entry in Nifty index should be staggered over 4-6 months.

SBI ETF Sensex: SBI ETF Sensex lost 3.52% during the month of Sept 2020 and the corresponding benchmark - Sensex TRI also fell by 3.52%. The total turnover of SBI ETF Sensex on BSE in Sept was at Rs 46cr.

The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the S&P BSE Sensex by holding Sensex stocks in same proportion. However, the performance of Scheme may differ from that of the underlying index due to tracking error.

Investing through staggered investment mode like DIYSIP will help first time investors to accumulate cost averaging units over periods. Active investors can also look for investment units when market corrects.

Rationale behind investing in Nifty & Sensex ETFs: Nifty & Sensex ETF gives a chance to

Participate in the most happening large cap stocks that will ride on growth in Indian economy,

Incur low cost in terms of expenses of scheme (compared to a diversified fund) or lower transaction costs (in the case of direct equity requiring frequent reshuffling),

Go in for SIP and take advantage of volatility in the markets to arrive at a lower entry level,

Avoid possibility of underperforming the benchmark,

Avoid the need of constantly monitoring and reviewing portfolio

ETF Review

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Nippon ETF Bank BeES:

NAV is rebased to reflect unit split

Factor Based vs Benchmark Indices:

The recent correction brings out the importance of having invested in such single factor-based ETF. Low volatility & Value 20 Index TRI corrected less compared to Nifty 50 & Nifty 100 TRI and have swiftly recovered to pre-COVID levels (period Feb 20 – Oct 21)

Nippon India ETF Bank BeES: Nippon ETF Bank BeES is an Exchange Traded Fund (ETF) listed on NSE and invests in stocks of Nifty Bank Index in the same proportion as the underlying Index. It provides an opportunity to investors for passively investing in a well-expanded portfolio of top banks as per free float market capitalization, as approximately represented by Nifty Bank Index. The Index mainly comprises of private banks (above 85% exposure).

Nippon India ETF Bank BeES lost 12.55% in terms of NAV during Sept 2020. The total traded volume on NSE during the month was at Rs 417cr. Nifty Bank TRI index lost 12.53% in Sept 2020.

The COVID-19 disrupted real economic activity, these disruptions coupled with an already weak credit demand, will likely impact asset growth. The outbreak and consequent disruption to economic activity will have multiple order effects on bank’s asset quality. Further, asset quality metrics will remain optically cushioned, as most accounts which have turned delinquent on exiting the moratorium would not have crossed ninety days past due. Further, the Supreme Court has ordered lenders not to classify accounts as non-performing. However, this would be subject to judicial outcomes on the matter, and banks could voluntarily classify accounts as non-performing.

Large banks, with strong, granular liability franchises, reasonable asset quality performance and sufficient capital will fare better as the sector is likely to see increased polarisation on both funding and credit side. Private banks have better pre-provision earnings and capital to absorb credit losses. Current prices of banking stocks reflect most of the above concerns and any faster turnaround in the industry fortunes could lead to re-rating of the stocks.

Nippon India ETF Bank BeES is suitable for aggressive investors seeking returns from sectoral passive strategy style, who wish to invest in the banking sector of India. Investing through DIYSIP on every month will further enable investors to rupee cost average of their investments considering the high volatile nature in the domestic equity market.

Factor Based ETF: Factor based ETFs are available and quite a few AMCs have ETFs for the same. Investing in such single factor based ETF can lead to higher accumulation of wealth over their respective parent ETF. Though the volumes would be lower in such ETF, an investor with moderate risk profile can consider placing his bets in such ETFs with a 3-5 year horizon. These single factor based funds score over active funds on risk adjusted returns (Sharpe ratio). Quality ETF, Value ETF & Low Volatility ETF are available for investors at large

The low volatility based ETF helps harness benefit of low volatility by helping investors during volatile markets and in process providing better risk-adjusted returns over a period of time. Stocks are selected taking into consideration volatility (i.e Standard Deviation). Low volatility factor is one of the few factors that have performed well during turbulent or bearish markets, providing capital protection when it is needed most

The value factor based ETF allows an investor take exposure to value stocks which may do well over a period of time. It reflects the behaviour and performance of a diversified portfolio of value companies. Stocks are selected based on parameters like Return on Capital Employed (ROCE), Price to Earnings (PE), Price to Book (PB) & Dividend Yield (DY). Nifty 50 Value 20 Index have yielded better returns than Nifty 50 Index, especially during bull phase of the market. It reflects the behaviour and performance of a diversified portfolio of value companies based on their fundamental attributes.

The Quality based ETF is created by assessing companies on fundamentals such as profitability, lower earnings-growth variability and lower leverage. Investment in quality factor is based on the underlying view that durable and stable businesses are expected to perform well in long term investment horizon.

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Bharat Bond ETF: The Government of India (GoI) through Department of Investment and Public Asset Management (DIPAM), approved the creation and launch of Debt ETF umbrella program - ‘Bharat Bond ETF’. The Debt ETF shall comprise of Fixed Income Securities such as Bonds, Credit Linked Note, Debentures, Promissory Notes, Government of India Bonds (“GoI Bonds”) etc. as underlying instruments issued by participating CPSEs, CPSUs, CPFIs and other Government Organisations and other entities to help them meet their CAPEX & business needs. The fund will have a defined maturity date and at maturity investor will get back their investment proceeds along with returns. The Nifty BHARAT Bond Index was constructed which measures the performance of portfolio of AAA rated bonds issued by government owned entities maturing in a specific year. Index follows a unique structure with defined maturity date. To cater to the two variants of Bharat Bond ETF (series 2023 & series 2030), two separate indices are constituted. Each index holds underlying bonds issued by AAA rated government owned entities maturing in a specific year, at which point the index terminates. Two more variants of Bharat Bond ETF (series 2025 & series 2031) was launched in the month of July. Bharat Bonds ETF which predominantly invests in PSU companies offer a declared rate of return (predictability), fixed investment horizon (maturity date) and safety of capital (less risky) like FD. A Bharat Bond ETF will be managed in a manner similar to a fixed maturity plan (FMP) but with the liquidity of an open-ended fund. The NAV of the ETF will fluctuate on a daily basis due to interest rate movements as debt papers are marked-to-market. To avoid this interest rate movement risk, investors can hold the ETF till maturity thus locking their yields, which would be possible only is such target maturity fund. Risk of future loss in the value of bonds from interest rate hikes comes down for investors who may enter the scheme at any point provided they hold the units to maturity. Investors compare this ETF with Taxfree bonds as the issuers and the related underlying risk is the same. Investors need to consider the liquidity, size of investment and taxation before for comparison. Both Bharat Bond 2030 and 2031 series are offering attractive YTM of 6.59% and 6.64% respectively (20th Aug). It is a good alternative to the taxfree bonds as bonds face liquidity issues. Trading volumes are concentrated in certain series, which might impact the entry and exit price to some extent. Due to this constraint, investors (especially those falling in higher slab rates) can consider investing in Bharat Bond ETF as the liquidity is quite comfortable and given the tax benefit of staying invested for more than 3 years (Taxation - 20% with indexation). Only shortcoming is that investors won’t be receiving any regular annual cash-flows from these ETFs.

Predictability of returns and low credit risk debt funds are the carrots that this ETF offers and is a good way to diversify one’s portfolio. With the current easing phase, interest rates are likely to be sticky at these lower levels for medium term. Investors seeking low risk, predictable return and reasonable level of liquidity can invest in Bharat Bond ETF which will provide reasonable diversification to one’s portfolio. For individual falling in higher slabs, post-tax returns (for long term investment horizon) would be better than those on competing instruments.

Discount (+) / Premium (-) of Spot Price to NAV for last three months ending Sept 2020:

ETF name Category Avg Max Min

Aditya Birla SL Nifty ETF Equity: Large -0.47% 2.16% -2.96%

Aditya Birla SL Nifty Next 50 ETF Equity: Large 2.52% 13.96% -3.84%

Aditya Birla SL Sensex ETF Equity: Large 6.91% 23.12% -12.29%

AXIS Nifty ETF Equity: Large 0.13% 17.87% -2.67%

Edelweiss ETF - Nifty 100 Quality 30 Equity: Large 16.10% 23.47% 8.47%

Edelweiss ETF - Nifty 50 Equity: Large 18.81% 23.37% 15.50%

HDFC Nifty 50 ETF Equity: Large -0.67% 0.13% -1.65%

HDFC Sensex ETF Equity: Large -0.24% 2.05% -1.65%

ICICI Pru Alpha Low Vol 30 ETF Equity: Large 0.01% 1.10% -1.18%

ICICI Pru Nifty 100 ETF Equity: Large 0.05% 1.50% -0.94%

ICICI Pru Nifty ETF Equity: Large -0.12% 0.38% -0.49%

ICICI Pru Nifty Low Vol 30 ETF Equity: Large 0.09% 1.05% -1.26%

ICICI Pru Nifty Next 50 ETF Equity: Large -0.15% 0.85% -0.85%

ICICI Pru NV20 ETF Equity: Large 0.00% 1.25% -1.16%

ICICI Pru Sensex ETF Equity: Large -0.02% 1.31% -0.84%

IDFC Nifty ETF Equity: Large -0.71% 2.00% -3.70%

IDFC Sensex ETF Equity: Large -1.87% 5.84% -5.43%

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Indiabulls Nifty50 Exchange Traded Fund Equity: Large 5.04% 18.75% -1.61%

Invesco India Nifty ETF Equity: Large 0.12% 1.56% -1.09%

Kotak Nifty ETF Equity: Large -0.10% 0.67% -0.60%

Kotak NV 20 ETF Equity: Large -0.09% 1.87% -1.61%

Kotak Sensex ETF Equity: Large 0.03% 2.25% -1.13%

LIC MF ETF NIFTY Equity: Large -1.46% 1.73% -4.07%

LIC MF ETF Nifty 100 Equity: Large -1.28% 3.83% -5.62%

LIC MF ETF Sensex Equity: Large -0.07% 4.74% -3.13%

Mirae Asset Nifty 50 ETF Equity: Large 0.07% 1.87% -0.69%

Mirae Asset Nifty Next 50 ETF Equity: Large -0.08% 1.30% -0.65%

Motilal Oswal M50 ETF Equity: Large -0.01% 0.99% -2.15%

Nippon India ETF Junior BeES Equity: Large 0.01% 0.87% -0.36%

Nippon India ETF Nifty 100 Equity: Large 0.08% 4.84% -3.33%

Nippon India ETF Nifty BeES Equity: Large 0.00% 0.54% -0.30%

Nippon India ETF NV20 Equity: Large -0.52% 1.17% -2.23%

Nippon India ETF Sensex Equity: Large 0.09% 19.68% -4.93%

Nippon India ETF Sensex Next 50 Equity: Large 17.94% 23.99% 10.96%

Nippon India ETF Shariah BeES Equity: Large -0.15% 16.54% -5.01%

Quantum Nifty ETF Equity: Large -0.38% 1.72% -1.62%

SBI BSE 100 ETF Equity: Large -1.16% 4.06% -5.03%

SBI ETF Nifty 50 Equity: Large -0.05% 0.35% -0.38%

SBI ETF Nifty Next 50 Equity: Large -0.02% 1.28% -1.23%

SBI ETF Quality Equity: Large -0.36% 3.02% -2.15%

SBI ETF SENSEX Equity: Large -0.24% 1.14% -1.35%

SBI ETF SENSEX Next 50 Equity: Large 1.28% 11.28% -3.41%

Tata Nifty Exchange Traded Fund Equity: Large 2.99% 22.96% -3.44%

UTI-Nifty ETF Equity: Large 0.11% 0.60% -0.43%

UTI-Nifty Next 50 ETF Equity: Large -0.30% 5.54% -3.38%

UTI-S&P BSE Sensex Next 50 ETF Equity: Large 1.05% 10.30% -3.32%

UTI-Sensex ETF Equity: Large -0.05% 3.86% -2.52%

ICICI Pru Midcap Select ETF Equity: Large & Mid -0.13% 0.58% -1.48%

Nippon India ETF Nifty Midcap 150 Equity: Large & Mid -0.02% 1.18% -1.35%

ICICI Pru Midcap 150 ETF Equity: Mid -0.09% 0.98% -2.14%

Motilal Oswal Midcap 100 ETF Equity: Mid -0.26% 2.62% -2.29%

ICICI Pru S&P BSE 500 ETF Equity: Multi 0.02% 1.64% -0.76%

Aditya Birla SL Banking ETF Equity: Sectoral-Banking 0.74% 6.33% -3.61%

Edelweiss ETF - Nifty Bank Equity: Sectoral-Banking 7.25% 14.07% -2.47%

HDFC Banking ETF Equity: Sectoral-Banking 0.06% 1.11% -1.10%

ICICI Pru Bank ETF Equity: Sectoral-Banking -0.02% 0.35% -0.44%

Kotak Banking ETF Equity: Sectoral-Banking 0.00% 0.78% -0.43%

Kotak PSU Bank ETF Equity: Sectoral-Banking 0.03% 2.28% -1.89%

Nippon India ETF Bank BeES Equity: Sectoral-Banking 0.08% 0.57% -0.28%

SBI ETF Nifty Bank Equity: Sectoral-Banking 0.01% 0.54% -0.43%

UTI-Bank Exchange Traded Fund Equity: Sectoral-Banking 0.70% 2.17% -0.76%

ICICI Pru Private Banks ETF Equity: Sectoral-Pvt Banking 0.40% 2.89% -0.95%

ETF Review

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Tata Nifty Private Bank ETF Equity: Sectoral-Pvt Banking -1.31% 3.22% -6.03%

Nippon India ETF PSU Bank BeES Equity: Sectoral-PSU Banking 0.25% 1.30% -0.95%

Nippon India ETF Consumption Equity: Sector-Consumption -0.75% 1.49% -2.87%

Nippon India ETF Dividend Opportunities Equity: Sector-Consumption -0.82% 2.72% -6.68%

ICICI Pru IT ETF Equity: Sector-IT 0.19% 0.68% -0.63%

Nippon India ETF Nifty IT Equity: Sector-IT 0.17% 1.02% -0.65%

Nippon India ETF Infra BeES Equity: Sectoral-Infra -0.33% 1.96% -3.22%

Bharat 22 ETF Equity: Thematic-PSU -0.16% 2.05% -1.23%

CPSE ETF Equity: Thematic-PSU -0.24% 0.52% -0.52%

Motilal Oswal NASDAQ-100 ETF Equity: International 0.80% 3.18% -0.71%

Nippon India ETF Hang Seng BeES Equity: International 12.26% 17.18% 7.69%

BHARAT Bond ETF - April 2023 Debt: PSU 0.10% 0.36% -0.26%

BHARAT Bond ETF - April 2025 Debt: PSU 0.30% 0.80% -0.28%

BHARAT Bond ETF - April 2030 Debt: PSU 0.20% 0.71% -1.37%

BHARAT Bond ETF - April 2031 Debt: PSU 0.58% 1.14% -0.24%

LIC MF G-Sec Long Term ETF Debt: Gilt -0.25% 2.63% -3.11%

Nippon India ETF Long Term Gilt Debt: Gilt 0.21% 5.89% -0.41%

SBI ETF 10 Year Gilt Debt: Gilt with 10yr constant duration 1.79% 9.83% -1.67%

DSP Liquid ETF - Reinvest (Div-D) Debt: Liquid 0.00% 0.00% 0.00%

ICICI Pru Liquid ETF Debt: Liquid 0.00% 0.00% -0.01%

Nippon India ETF Liquid BeES Debt: Liquid 0.00% 0.00% 0.00%

What is Discount (+) / Premium (-) of Spot Price to NAV and how to read? As ETFs are passively managed investments, the prices of gold ETFs must theoretically move in tandem with the price of physical gold. When the price of gold moves up, the value of ETFs appreciates and vice versa.

It is worth noting that like all traded instruments, the traded price of the ETF is influenced by demand and supply dynamics, and therefore is often different from the NAV of the ETF.

The NAV of the ETF reflects the end of day value of the units based on the holdings of the ETF reflecting the price of gold, after charging expenses for fund management.

Quite often, the traded prices of the ETF are quite different from the NAV due to low trades and other factors. In some cases, the traded price of the ETF may be lesser than the NAV of the ETF (discount of close price to the NAV). That means that a selling trade made on such a day will lead to losses for the investor.

When the traded price is more than the NAV (premium of Close price to the NAV), it means that the unit holder is getting a price for his units in excess of the actual value of investment.

Usually a large difference in the price of the traded price and NAV corrects itself over time, offering an arbitrage opportunity by the market makers.

Even as Gold ETFs hold the promise of providing instant liquidity during trading hours, the poor trading volumes across some of the ETFs act as a deterrent to such liquidity.

Investors have to be careful on this, however one cannot notice such mispricing during the market hours as the NAV of the day is disclosed post market hours.

The above table lists out the average, minimum and maximum of the premium or discount of the spot price to their NAVs in the last three months.

Performance of Equity & Fixed Income ETFs:

Scheme Name Benchmark Category Corpus (Rs.

Crs)

Expense Ratio (%)

TER

Trailing Returns (%) Tracking Error

(%) 1 Month Absolute

3 Months Absolute

6 Months Absolute

1 Year CAGR

3 Year CAGR

5 Year CAGR

SBI ETF Nifty 50 Nifty 50 TRI Equity: Large 74,867 0.07 -3.41 9.52 36.42 -1.31 5.88 8.45 0.017

UTI-Nifty ETF Nifty 50 TRI Equity: Large 18,323 0.06 -3.41 9.51 36.42 -1.33 5.85 8.52 0.017

Nippon India ETF Nifty BeES Nifty 50 TRI Equity: Large 2,699 0.05 -3.40 9.51 36.40 -1.25 5.91 8.31 0.017

ICICI Pru Nifty ETF Nifty 50 TRI Equity: Large 1,307 0.05 -3.41 9.50 36.32 -1.26 5.86 8.39 0.027

Kotak Nifty ETF Nifty 50 TRI Equity: Large 911 0.14 -3.40 9.50 36.35 -1.40 5.77 8.33 0.019

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LIC MF ETF NIFTY Nifty 50 TRI Equity: Large 509 0.10 -3.35 9.62 36.54 -1.11 5.92 - 0.026

HDFC Nifty 50 ETF Nifty 50 TRI Equity: Large 466 0.05 -3.41 9.52 36.40 -1.32 5.87 - 0.018

Mirae Asset Nifty 50 ETF Nifty 50 TRI Equity: Large 311 0.07 -3.33 9.59 36.15 -1.30 - - 0.026

Tata Nifty Exchange Traded Fund Nifty 50 TRI Equity: Large 191 0.07 -3.28 9.79 36.68 -1.00 - - 0.023

Aditya Birla SL Nifty ETF Nifty 50 TRI Equity: Large 169 0.05 -3.38 9.57 36.22 -1.23 5.75 8.34 0.023

AXIS Nifty ETF Nifty 50 TRI Equity: Large 23 0.15 -3.41 9.52 36.20 -1.28 5.87 - 0.022

Motilal Oswal M50 ETF Nifty 50 TRI Equity: Large 19 0.05 -3.35 9.53 36.23 -1.51 5.46 7.64 1.905

Indiabulls Nifty50 Exchange Traded Fund Nifty 50 TRI Equity: Large 12 0.12 -2.92 10.30 37.41 0.11 - - 0.040

Quantum Nifty ETF Nifty 50 TRI Equity: Large 7 0.09 -3.39 9.54 36.38 -1.37 5.76 8.25 0.138

Invesco India Nifty ETF Nifty 50 TRI Equity: Large 2 0.10 -3.40 9.50 36.27 -1.33 5.80 8.40 0.018

Edelweiss ETF - Nifty 50 Nifty 50 TRI Equity: Large 2 0.07 -3.38 9.55 35.96 -1.57 5.88 8.72 0.027

IDFC Nifty ETF Nifty 50 TRI Equity: Large 2 0.10 -3.35 9.36 35.73 -1.03 5.92 - 0.042

SBI ETF SENSEX S&P BSE Sensex TRI Equity: Large 30,319 0.07 -3.52 9.57 34.69 -0.54 7.91 9.06 0.136

UTI-Sensex ETF S&P BSE Sensex TRI Equity: Large 8,643 0.06 -3.52 9.57 34.71 -0.52 7.94 9.13 0.136

LIC MF ETF Sensex S&P BSE Sensex TRI Equity: Large 408 0.10 -3.46 9.61 34.68 -0.54 7.98 - 0.138

HDFC Sensex ETF S&P BSE Sensex TRI Equity: Large 74 0.05 -3.51 9.55 34.57 -0.59 7.91 - 0.135

ICICI Pru Sensex ETF S&P BSE Sensex TRI Equity: Large 33 0.08 -3.52 9.50 34.56 -0.50 7.83 9.00 0.135

Nippon India ETF Sensex S&P BSE Sensex TRI Equity: Large 24 0.07 -3.52 9.54 34.57 -0.59 7.90 9.06 0.134

Aditya Birla SL Sensex ETF S&P BSE Sensex TRI Equity: Large 15 0.08 -3.48 9.53 34.25 -0.57 3.83 - 0.131

Kotak Sensex ETF S&P BSE Sensex TRI Equity: Large 13 0.28 -3.53 9.51 34.51 -0.78 7.69 8.84 0.136

IDFC Sensex ETF S&P BSE Sensex TRI Equity: Large 1 0.20 -3.41 9.33 34.02 -0.46 7.88 - 0.129

Nippon India ETF Junior BeES Nifty Next 50 TRI Equity: Large 1,192 0.15 -3.66 5.07 33.50 -1.06 0.22 7.39 1.661

SBI ETF Nifty Next 50 Nifty Next 50 TRI Equity: Large 528 0.15 -3.70 5.05 33.43 -1.26 0.15 7.70 0.803

UTI-Nifty Next 50 ETF Nifty Next 50 TRI Equity: Large 368 0.15 -3.55 5.21 33.78 -0.87 0.45 - 0.803

ICICI Pru Nifty Next 50 ETF Nifty Next 50 TRI Equity: Large 88 0.15 -3.21 5.54 33.97 -1.15 - - 0.806

Aditya Birla SL Nifty Next 50 ETF Nifty Next 50 TRI Equity: Large 68 0.05 -3.48 4.95 33.25 -1.35 - - 0.812

Mirae Asset Nifty Next 50 ETF Nifty Next 50 TRI Equity: Large 41 0.14 -4.58 3.93 32.02 - - - 0.941

Nippon India ETF Sensex Next 50 S&P BSE SENSEX Next 50 TRI Equity: Large 12 0.25 -4.42 7.36 37.15 -4.21 - - 0.778

UTI-S&P BSE Sensex Next 50 ETF S&P BSE SENSEX Next 50 TRI Equity: Large 5 0.23 -4.42 7.31 37.28 -4.12 - - 0.776

SBI ETF SENSEX Next 50 S&P BSE SENSEX Next 50 TRI Equity: Large 3 0.12 -4.42 7.40 37.41 -3.98 - - 0.776

Nippon India ETF NV20 Nifty50 value 20 TRI Equity: Large 24 0.36 -0.71 12.04 33.15 4.99 11.34 10.91 0.902

Kotak NV 20 ETF Nifty50 value 20 TRI Equity: Large 12 0.14 -0.67 12.17 33.39 3.59 10.82 - 0.957

ICICI Pru NV20 ETF Nifty50 value 20 TRI Equity: Large 8 0.15 -0.67 12.07 33.05 3.76 10.73 - 0.902

Nippon India ETF Shariah BeES Nifty 50 Shariah TRI Equity: Large 3 1.03 4.07 17.65 39.52 15.02 7.26 10.12 1.706

ICICI Pru Nifty Low Vol 30 ETF Nifty 100 Low Volatility 30 TRI Equity: Large 169 0.42 0.17 11.09 35.98 5.77 7.96 - 0.695

Edelweiss ETF - Nifty 100 Quality 30 Nifty 100 Quality 30 TRI Equity: Large 10 0.28 -0.58 11.10 34.45 1.57 7.05 - 0.715

LIC MF ETF Nifty 100 Nifty 100 TRI Equity: Large 317 0.26 -3.43 8.90 36.01 -1.33 4.87 - 0.111

ICICI Pru Nifty 100 ETF Nifty 100 TRI Equity: Large 12 0.46 -3.40 8.79 35.61 -1.43 4.77 7.98 0.115

Nippon India ETF Nifty 100 Nifty 100 TRI Equity: Large 7 0.97 -3.49 8.61 35.23 -2.22 4.02 7.37 0.114

SBI ETF Quality Nifty 200 Quality 30 TRI Equity: Large 21 0.50 0.41 12.50 34.72 7.72 - - 1.555

SBI BSE 100 ETF S&P BSE 100 TRI Equity: Large 4 0.14 -3.21 9.89 37.06 -0.82 4.92 8.29 0.129

ICICI Pru Alpha Low Vol 30 ETF Nifty Alpha Low-Vol 30 Index Equity: Large 25 0.40 1.47 - - - - - 1.127

Nippon India ETF Nifty Midcap 150 Nifty Midcap 150 TRI Equity: Large & Mid 172 0.23 -1.87 15.61 48.26 10.18 - - 0.811

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ICICI Pru Midcap Select ETF S&P BSE Mid-Cap TRI Equity: Large & Mid 20 0.45 -1.70 16.51 44.18 3.88 -1.97 - 1.770

ICICI Pru Midcap 150 ETF Nifty Midcap 150 TRI Equity: Mid 32 0.27 -2.28 14.88 46.91 - - - 0.935

Motilal Oswal Midcap 100 ETF Nifty Free Float Midcap 100 TRI Equity: Mid 42 0.20 -2.69 15.06 47.35 6.21 -1.79 5.58 0.792

ICICI Pru S&P BSE 500 ETF S&P BSE 500 TRI Equity: Multi 38 0.28 -2.96 10.94 39.03 1.10 - - 0.237

Nippon India ETF Bank BeES Nifty Bank TRI Equity: Sectoral-Banking 5,307 0.18 -12.55 0.33 14.11 -27.34 -4.05 4.42 2.606

Kotak Banking ETF Nifty Bank TRI Equity: Sectoral-Banking 4,392 0.18 -12.50 0.26 13.96 -27.43 -4.10 4.50 1.114

SBI ETF Nifty Bank Nifty Bank TRI Equity: Sectoral-Banking 2,245 0.20 -12.54 0.35 14.10 -27.31 -4.04 4.53 1.115

ICICI Pru Bank ETF Nifty Bank TRI Equity: Sectoral-Banking 548 0.16 -12.44 0.37 14.21 -26.79 - - 2.583

Aditya Birla SL Banking ETF Nifty Bank TRI Equity: Sectoral-Banking 89 0.16 -12.43 0.32 14.23 - - - 1.103

UTI-Bank Exchange Traded Fund Nifty Bank TRI Equity: Sectoral-Banking 35 0.16 - - - - - - 0.808

HDFC Banking ETF Nifty Bank TRI Equity: Sectoral-Banking 33 0.16 -12.53 - - - - - 1.078

Edelweiss ETF - Nifty Bank Nifty Bank TRI Equity: Sectoral-Banking 1 0.12 -12.43 0.44 14.28 -26.87 -3.77 - 1.109

Kotak PSU Bank ETF Nifty PSU Bank TRI Equity: Sectoral-Banking 24 0.49 -20.29 -10.65 -1.70 -44.62 -25.55 -16.47 1.865

ICICI Pru Private Banks ETF NIFTY Private Bank Index TRI Equity: Sectoral-Pvt Banking 1,043 0.16 -12.37 0.82 17.06 -28.40 - - 2.691

Tata Nifty Private Bank ETF NIFTY Private Bank Index TRI Equity: Sectoral-Pvt Banking 10 0.13 -12.35 0.91 17.29 -27.65 - - 1.214

Nippon India ETF PSU Bank BeES Nifty PSU Bank TRI Equity: Sectoral-PSU Banking 30 0.49 -20.26 -10.64 -1.70 -44.48 -25.47 -16.42 1.860

Nippon India ETF Consumption Nifty Consumption TRI Equity: Sector-Consumption 13 0.35 -3.52 4.63 27.84 1.73 5.44 8.84 1.583

Nippon India ETF Dividend Opportunities Nifty Dividend Opp 50 TRI Equity: Sector-Consumption 2 0.16 -4.20 5.65 28.59 -4.88 1.87 7.83 1.585

ICICI Pru IT ETF Nifty IT TRI Equity: Sector-IT 1,325 0.22 10.10 - - - - - 1.236

Nippon India ETF Nifty IT Nifty IT TRI Equity: Sector-IT 708 0.22 10.11 35.38 - - - - 1.343

Nippon India ETF Infra BeES Nifty Infrastructure TRI Equity: Sectoral-Infra 11 1.09 -5.28 1.99 37.00 -3.56 -1.16 2.23 1.829

CPSE ETF Nifty CPSE TRI Equity: Thematic-PSU 9,929 0.01 -13.79 -6.93 6.04 -30.96 -16.43 -4.67 1.906

Bharat 22 ETF S&P BSE Bharat 22 TRI Equity: Thematic-PSU 4,638 0.01 -13.15 -4.45 10.31 -30.96 - - 1.936

Motilal Oswal NASDAQ-100 ETF NASDAQ - 100 TRI Equity: International 1,714 0.54 -5.22 11.12 47.18 54.21 28.65 24.93 2.062

Nippon India ETF Hang Seng BeES Hang Seng Index Equity: International 13 0.86 -6.57 -5.07 0.73 -2.97 1.34 7.25 1.364

BHARAT Bond ETF - April 2023 NIFTY BHARAT Bond - April 23 Debt: PSU 4,531 0.01 0.81 1.47 6.26 - - - 0.159

BHARAT Bond ETF - April 2025 NIFTY BHARAT Bond - April 25 Debt: PSU 5,797 0.01 0.67 - - - - - 0.123

BHARAT Bond ETF - April 2030 NIFTY BHARAT Bond - April 30 Debt: PSU 10,210 0.01 1.17 0.80 5.87 - - - 0.250

BHARAT Bond ETF - April 2031 NIFTY BHARAT Bond - April 31 Debt: PSU 7,110 0.01 1.46 - - - - - 0.170

LIC MF G-Sec Long Term ETF Nifty 8-13 Yr G-Sec Index Debt: Gilt 92 0.27 1.42 0.60 4.64 9.80 7.94 8.38 0.152

Nippon India ETF Long Term Gilt Nifty 8-13 Yr G-Sec Index Debt: Gilt 12 0.10 1.42 0.62 4.66 9.90 8.25 - 0.151

SBI ETF 10 Year Gilt Nifty 10 yr Benchmark G-Sec Debt: Gilt with 10yr constant dur 2 0.14 1.50 0.10 2.18 7.61 6.35 - 0.199

Nippon India ETF Liquid BeES Nifty 1D Rate Index Debt: Liquid 2,619 0.65 0.00 0.00 1.21 2.67 3.59 3.86 0.243

DSP Liquid ETF - Reinvest (Div-D) Nifty 1D Rate Index Debt: Liquid 87 0.52 0.33 0.86 1.26 2.95 - - 0.131

ICICI Pru Liquid ETF S&P BSE Liquid Rate Index Debt: Liquid 75 0.65 0.25 0.79 1.22 2.76 - - 0.244

Note: Corpus, Returns and Expense ratio as on 30st Sept 2020. Tracking error is for last one year.

State of the Exchange Traded Funds - Globally: 1. During the months of July-Sept, the major benchmarks closed in bull market territory, bounced back from the lows of March month and this was largely driven by optimism of economic recovery post reopening of

the countries and partly on account of unprecedented policy support at global levels. Stock & mixed-assets funds witnessed net inflows in July-Sept, after largest monthly net outflows since at least 2008 in March. 2. ETF Demand in Sept were solid despite markets declined during the month, investors added more than $35.2 billion flows into U.S.-listed ETFs in Sept and $113 billion during the quarter July-Sept 2020; lifting the

year-to-date tally to $318 billion, well ahead of last year’s $195 billion at this time. Year-to-date (till Oct 16, 2020) inflows now stand at $352 billion, ahead of last year's $211 billion pace. Total assets in U.S.-listed ETFs stand at $4.73 trillion.

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3. Gold-backed ETFs and similar products (gold ETFs) recorded their tenth consecutive month of positive flows, adding 68 tonnes in Sept 2020 – equivalent to US$4.6bn or 2% of assets under management (AUM). Global holdings have once again reached a new all-time high of 3,880 tonnes. Asian-listed fund holdings rose meaningfully during the month, by 6.8 tonnes (US$432mn, 5.9% AUM). The sharp rise was triggered by a flight to safety amid the coronavirus (Covid-19) pandemic that hit world economy hard.

(Source: ETF.com)

ETF Reckoner for period Oct–Dec 2020: Exchange Traded Funds

Scheme Name & ISIN Close Price (Rs) NAV (Rs)

Fund Size (Rs in crs)

Expense Ratio % (TER)

6 Months Return Absolute

1 Year Return CAGR

3 Year Return CAGR

Tracking Error Average daily Turnover (Rs)

Avg daily Discount/ Premium (%)

Global ETFs

Motilal Oswal NASDAQ-100 ETF INF247L01031

819.20 816.75 1651 0.54 47.18 54.21 28.65 3.380 4,54,91,982 0.80%

Gold ETFs

Kotak Gold ETF INF373I01049

441.25 440.42 1,445 0.55 13.35 30.57 17.97 1.100 4,07,55,983 0.28%

Nippon India ETF Gold BeES INF204KB17I5

44.18 44.10 5,170 0.79 13.27 30.64 17.81 1.080 29,62,55,652 -0.38%

SBI ETF Gold INF200K01099

4,508.55 4,520.07 1,807 0.51 13.34 30.97 17.89 1.100 10,01,40,851 -0.40%

Nifty ETFs

ICICI Pru Nifty ETF INF109K012R6

118.98 119.16 1,506 0.05 36.32 -1.26 5.86 0.020 2,28,98,991 -0.12%

Nippon India ETF Nifty BeES INF204KB14I2

119.93 119.84 2,888 0.05 36.40 -1.25 5.91 0.020 20,38,48,659 0.00%

SBI ETF Nifty 50 INF200KA1FS1

116.27 116.38 75,911 0.07 36.42 -1.31 5.88 0.020 2,60,41,909 -0.05%

Sensex ETFs

SBI ETF SENSEX INF200K01VT2

407.98 407.55 30,324 0.07 34.69 -0.54 7.91 0.020 45,91,842 -0.24%

UTI-Sensex ETF INF789FB1X58

402.89 405.02 8,634 0.06 34.71 -0.52 7.94 0.020 7,05,334 -0.05%

Banking ETFs

Kotak Banking ETF INF174K01F59

216.25 216.51 5,085 0.18 13.96 -27.43 -4.10 0.050 7,66,24,125 0.00%

SBI ETF Nifty Bank INF200KA1580

213.63 213.83 2,639 0.20 14.10 -27.31 -4.04 0.050 3,01,97,905 0.01%

ICICI Pru Private Banks ETF INF109KC1E35

117.34 116.51 1,086 0.16 17.06 -28.40 - 0.100 44,41,023 0.40%

Nippon India ETF PSU Bank BeES INF204KB16I7

14.07 14.01 59 0.49 -1.70 -44.48 -25.47 0.010 26,19,627 0.25%

Factor based ETFs

ICICI Pru Nifty Low Vol 30 ETF INF109KB10T8

96.12 96.04 145 0.42 35.98 5.77 7.96 0.020 73,12,616 0.09%

Nippon India ETF NV20 INF204KB18I3

60.20 59.80 25 0.36 33.15 4.99 11.34 0.060 4,48,208 -0.52%

Other Equity ETFs

Nippon India ETF Junior BeES 282.18 281.96 1,185 0.15 33.50 -1.06 0.22 0.020 2,45,71,704 0.01%

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INF732E01045

Motilal Oswal Midcap 100 ETF INF247L01023

17.85 17.78 38 0.20 47.35 6.21 -1.79 0.040 17,70,138 -0.26%

Nippon India ETF Shariah BeES INF732E01128

294.05 296.62 3 1.03 39.52 15.02 7.26 0.050 3,20,925 -0.15%

Debt ETFs

Nippon India ETF Long Term Gilt INF204KB1882

21.91 21.90 12 0.10 4.66 9.90 8.25 0.190 8,37,758 0.21%

BHARAT Bond ETF - April 2023 INF754K01KN4

1,084.22 1,084.11 4,256 0.0005 6.26 - - 0.300 99,36,946 0.10%

BHARAT Bond ETF - April 2030 INF754K01KO2

1,101.14 1,094.65 9,897 0.0005 5.87 - - 0.490 3,25,77,532 0.20%

Note:

NAV value, Closing price (NSE) and Trailing Returns are as on Sept 30, 2020. Corpus values are as on Aug 31, 2020.

Tracking error is a measure that indicates divergence between a portfolio's returns and the benchmark index for past 1 year. Expense ratio% (TER) is as on Sept 30 2020.

Discount and Premium is calculated as the difference between NAV and the closing price on a particular date. If the close price is less than the NAV, then it is at discount and vice versa. We have taken the daily average discount/premiums for the above schemes over the last three months. Daily average turnover for the above schemes are for the last three months.

Schemes shortlisted on the basis of 6m, 1y and 3y Trailing Returns giving appropriate weights, volumes, average daily turnover, tracking error, discount/premium to NAV.

The source of the above data is NAVIndia and ACE MF Software

ETF Basics: What are ETFs? Exchange Traded Fund (ETF) are mutual funds that trade like stocks. Like a stock, ETF units are traded on exchanges on which it is listed at market determined prices and are bought and sold at any moment during market hours through demat accounts. The most common ETFs are designed to track the performance of a market benchmark or Index’s total return. Benefits of ETFs: Diversification: Fund holds a basket of securities corresponding to the underlying index. Lower cost: ETFs generally offer lower expense ratios than active/conventional mutual funds schemes. Lower investment: You can buy an ETF for as low as the cost of one unit, gives you the opportunity to start investing in a diversified portfolio with less money. Passive management: You don't have to keep track of every single investment your ETF owns. The fund manager ensures that the portfolio resembles the benchmark index with minimal tracking error. Tax Efficiency: Equity ETFs are treated as Equity oriented funds for the purpose of taxation. Trading flexibility: ETFs offer you the same intraday pricing you get when trading stocks through a broker. What’s the difference between Active Funds and ETFs? Goal: Active funds aim to outperform the benchmark, ETFs track the performance of the benchmark; Strategy: Active funds construct a portfolio to generate alpha through research & analysis, ETFs mimic the benchmark portfolio; Risks: Active funds additional risk to generate Alpha, ETFs do not need to take any additional risks as they track the benchmark’s return. Why should you consider having ETFs in your portfolio? Liquidity: Investments in ETFs can form a portion of an overall portfolio in a manner to ensure liquidity across the portfolio. Balanced Portfolio: Owning a basket of securities in a well-diversified manner is often costly. ETF`s give investors the option to invest in a basket of securities at a fraction of the cost of an underlying basket. As a broad index ETF baskets consist of multiple stocks in a pre-determined weight calculated periodically, the ETF unit holder can hold a balanced portfolio through a single instrument. Cost Efficiency: Buying several securities involves a variety of costs like brokerage and taxes. An ETF transaction is a single purchase that gives you access to all the securities within a given basket based on the individual stock weightage. Risk Management: Owning a broad based ETF gives access to a diversified portfolio thus reducing concentration risks on a sector specific and stock specific basis.

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