ICICI Prudential Alpha Low Vol 30 ETF

ETFs are generally passively managed mutual fund schemes tracking a benchmark index and reflect the performance of that index.
ETFs and Index funds are gaining traction in India. The flows into ETFs and index funds are seeing a steady increase over the years across segments. Experts see the surge in flows as a positive indicator of the gaining acceptance of ETFs.

In this scenario, ICICI Prudential Mutual Fund is launching Nifty Alpha Low Volatility 30 ETF, a multi-factor index based ETF. Check this post to know more about multi-factor indices.

Fund Details:
Benchmark: Nifty Alpha Low-Volatility 30 Total Return Index.
Listing: NSE and BSE,
Minimum Amount for Application: During NFO: Rs. 5,000 and in multiples of Re.1.
On Stock Exchanges: Investors can buy/sell units of the Scheme in round lot of 1 unit and in multiples thereof.
Issue open: Aug 3- 10.
No Entry load.
Expense ratio: -


Nifty Alpha Low Volatility 30 Index -Methodology.

icici etf


The stocks are picked from Nifty 100 and Nifty Midcap 50, with individual stock weight capped at 5%. Nifty Alpha low-Volatility 30 Index moves away from assigning weights based on market capitalization and instead considers their relevancy to factors.

5-Year Rolling Returns:

Since 01-April-2005 (First Observation on 01-April-2010) till 22-July-2020.

icici etf
Source: Icici MF.

Historically, Nifty Alpha Low Volatility 30 Index has given better risk adjusted returns over the long period.

ICICI Prudential Alpha Low Vol 30 ETF provides investors a choice to take exposure to multiple factors through a single index product. Investors can consider investing this as part of their satellite portfolio, Nifty 50 index funds being the core portfolio.


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