ICICI Prudential Mutual Fund has introduced a new exchange-traded fund (ETF) named ICICI Prudential Nifty 200 Quality 30 ETF. The ETF aims to replicate the performance of the Nifty 200 Quality 30 Index, comprising the top 30 companies from the Nifty 200 Index, selected based on their ‘Quality’ Score. This score is determined using return on equity (ROE), financial leverage (debt/equity ratio), and earnings (EPS) growth variability over the previous five years.
The new fund offer is open from July 21, 2023, until August 4, 2023, with a minimum investment of Rs. 1,000 and in multiples of Re. 1. The ETF is passively managed, tracking a benchmark index to reflect its performance, subject to tracking error.
The Nifty 200 Quality 30 Index’s constituents are companies with higher profitability, lower leverage, and more stable earnings, making it a potential diversification opportunity across various sectors. The ETF offers exposure to firms with strong cash flows and has the potential to outperform broader market indices. Additionally, investors can invest with a minimum of 1 unit on the stock exchange, allowing for easy creation of unit sizes.