New ETF alert: ICICI Prudential Nifty 200 Quality 30 ETF launched. Details here

ICICI Prudential Mutual Fund has launched ICICI Prudential Nifty 200 Quality 30 ETF. The offering aims to provide returns that correspond to the returns provided by Nifty 200 Quality 30 Index, subject to tracking errors.

In a statement, the AMC said the selection universe for this index is the Nifty 200 Index. The Quality score for each company is determined based on Return on Equity (ROE), financial leverage (Debt/Equity Ratio) and earning (EPS) growth variability analysed during the previous 5 years. 30 companies with higher profitability, lower leverage and more stable earnings are selected to be part of the index.

The stock weight is capped at the lower of 5% or 5 times the weight of the stock in the index based on free float market capitalization.

“ICICI Prudential Nifty 200 Quality 30 ETF is a smart beta offering based on quality as a factor. The offering provides investors with an opportunity to diversify equity investments across various sectors and in companies having strong cash flows. The index has historically provided better dividend yield than Nifty 200 TRI and Nifty 50 TRI,” said Chintan Haria, Head Investment Strategy, ICICI Prudential AMC.

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The top five sectors that contribute highest to this index include FMCG, IT, Consumer Durables, Health Care, Oil & Gas. In terms of rebalancing, the index is rebalanced semi-annually.

Calendar Year Performance: Nifty200 Quality 30 Index has outperformed Nifty 50 TRI & Nifty 200 TRI in 5 out of 10 preceding years.

NFO Dates

The New Fund Offer opened on July 21, 2023 and closes on August 04, 2023.

Why one should invest in ICICI Prudential Nifty 200 Quality 30 ETF?

• Companies are selected based on their quality score under this ETF on parameters such as return on equity (ROE), financial leverage (Debt/Equity Ratio) and earning (EPS) growth variability analysed during the previous 5 years
• Opportunity to diversify equity investments across various sectors and in companies having strong cash flows
• Outperformance against broader market indices over the period of time
• Access to selected companies with a minimum investment of 1 unit on the stock exchange in term of creation unit size

Disclaimer: The above content is based on a press release shared by ICICI Pru Mutual Fund and intended for informational purposes only. Mutual Funds are subject to market risks. Please consult your financial advisor before investing.