ICICI Prudential S&P BSE Sensex ETF, one of the oldest ETFs, has completed 21 years and has an asset under management of ₹4,561 crore as of December-end.
An initial investment of ₹1 lakh on January 10, 2003, has compounded at 17%, resulting in a growth to ₹26.4 lakh.
In the same timeframe, the benchmark S&P BSE Sensex TRI delivered a CAGR of 17.4 per cent. Given that ETFs replicate the underlying index, the difference between the benchmark index returns and the scheme return is attributed to tracking error. The fund has a tracking error of 0.04 per cent (1-Year) and an expense ratio of 0.03 per cent.
Chintan Haria, Principal- Investment Strategy, ICICI Prudential AMC, said, “The journey of the Sensex ETF is a story of the growth of the Indian equity market over the past two decades.”
Over the past few years, the fund house has launched a variety of offerings across market capitalisations, sectors, asset classes and smart beta offerings. It has 29 ETF schemes catering to the various investment needs of an investor.
Haria said with the rise in the number of demat accounts and market participants, the interest in ETFs has significantly improved, especially when it comes to taking exposure to benchmark indices.