SBI Mutual Fund today announced the launch of two new exchange traded funds (ETFs), SBI Nifty200 Value 30 ETF and SBI Nifty Smallcap 250 ETF.
The new fund offer or NFO of both the schemes will open for subscription on May 7 and will close on May 18.
The SBI Nifty Smallcap 250 ETF is an open-ended exchange traded fund replicating/tracking the Nifty Smallcap 250 Index. The index represents 250 companies ranked from 251 to 500 within the Nifty 500 universe. This index aims to measure the performance of small-capitalisation companies and currently accounts for approximately 5.20% of the free-float market capitalisation. (Source: NSE)
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The SBI Nifty200 Value 30 ETF is an open-ended exchange traded fund replicating/tracking the Nifty200 Value 30 Index. The index aims to track the performance of 30 companies selected from the Nifty 200 based on value-oriented parameters such as earnings-to-price (E/P) ratio, book value-to-price ratio, sales-to-price ratio (S/P) and dividend yield.
The investment objective of both the schemes is to provide returns that closely correspond to the total returns of the securities represented by their respective underlying indices, subject to tracking error.
“As investor preferences continue to evolve, passive investing has emerged as an important component of portfolio construction, alongside active strategies. The launch of the SBI Nifty 200 Value 30 ETF and the SBI Nifty Smallcap 250 ETF reflects our commitment to offering a wider range of investment solutions, enabling investors to access diversified and well-defined market segments,” said Nand Kishore, MD and CEO, SBI Funds Management.
The minimum application amount during the NFO is Rs 5,000 and in multiples of Re 1 thereafter. Both the funds will be managed by Viral Chhadva.
“These ETF launches broaden our equity passive suite and enhance the solution set available to investors and distributors, addressing distinct portfolio needs from value-oriented exposure based on fundamentally screened stocks to access to the long-term growth potential of the small-cap segment. Both products offer disciplined, index-based exposure, providing additional building blocks to support diversified portfolio construction,” said DP Singh, Joint CEO, SBI Funds Management.
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The SBI Nifty200 Value 30 ETF would primarily invest a minimum of 95% and up to 100% of its assets in securities forming part of the Nifty200 Value 30 Index. The SBI Nifty Smallcap 250 ETF would primarily invest a minimum of 95% and up to 100% of its assets in securities forming part of the Nifty Smallcap 250 Index.
The balance up to 5% of the assets in both funds may be invested in government securities (like G-Secs, SDLs and treasury bills), including triparty repo and units of liquid mutual funds.
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