HDFC MF announces HDFC Nifty IT ETF, HDFC Nifty Private Bank ETF. Details here

These funds offer to gain exposure to the growing IT & Private Bank space. The captioned NFOs opened on October 28, 2022, and will close on November 9, 2022.

“The HDFC Nifty IT ETF seeks to benefit from structural tailwinds in tech spending including growth of cloud computing, while the HDFC Nifty Private Bank ETF offers exposure to private banks which have better fundamentals relative to sector peers and valuations below long-term averages,” the fund house said in a release.

Both the funds consist of the 10 largest stocks in the respective sectors listed on the NSE, and they are rebalanced semi-annually in March and September. The objective of the funds is to provide investment returns that, before expenses, correspond to the total returns of the Securities as represented by the Nifty IT Index and Nifty Private Bank Index, respectively, subject to tracking errors. Both the funds will be managed passively, with investments in securities covered by the underlying index, HDFC MF said.

Commenting on the launch, Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Co. Ltd. said, “HDFC AMC has been one of the oldest players in index solutions with proven capability, giving a definite edge. Launch of HDFC Nifty IT ETF and HDFC Nifty Private Bank ETF are a natural extension to include these sector ETFs as part of our endeavour to offer diversified product bouquet for our investors”.