ICICI Prudential Asset Management Company (AMC) has informed that Bharat 22 ETF, an open-ended Exchange Traded Fund (ETF) that tracks S&P BSE Bharat 22 Index, about the rebalancing of Bharat 22 portfolio.
The S&P BSE Bharat 22 Index is a product of Asia Index, a joint venture among affiliates of S&P Dow Jones Indices LLC and BSE Limited, and has been licensed for use by ICICI Prudential Asset Management Company Limited (licensee).
As specified in the index methodology, rebalancing of the Index is conducted annually by the Index provider, Asia Index (AIPL). As per the notice by the AMC, the Index provider has announced rebalancing date for the Index as March 21, 2022. On account of the above, a stock weight cap of 15% and sector weight cap of 20% as per the index methodology shall be applied to the Index. The corresponding changes shall also be reflected in the portfolio of the Scheme.
The portfolio of the scheme as on March 14, 2022 consists of Axis Bank, Bank of Baroda, Bharat Electronics, Bharat Petroleum Corporation, Coal India, Engineers India, Gail India, ITC, Indian Bank, Indian Oil Corp, Larsen & Toubro, NBCC, NHPC, NLC, NTPC, National Aluminium Corporation, Oil & Natural Gas Corporation, Power Finance Corporation, Power Grid Corp of India, REC, SJVN and State Bank of India.
As per the AMC, to align the portfolio weight with the revised weights shared by the Index provider, the scheme aims to purchase/sell the portfolio constituents at the Time Weighted Average Price (TWAP) of individual constituents prevailing on that day.
In terms of performance, as per ACE MF, Bharat 22 ETF delivered 1-year and 3-year returns of 27.07 per cent and 8.54 per cent respectively till date. Since the inception of November 2017, the fund delivered 6.78 percent.
