Mirae SPX 500 Top 50 ETF & FOF

Mirae AMC to launch Mirae SPX 500 Top 50 ETF & FOF. 

The ETF invests in the Top 50 companies of S&P 500 Index as per free float market cap. The Fund of Fund will invest in the ETF.

NFO period: 1 - 14 September, 2021.
ETF to be listed in NSE & BSE.
Benchmark: S&P 500 Top 50 TRI (Total Return Index) (INR).
Minimum amount: Rs.5,000.
Taxation:  Debt.

SPX 500 Top 50 Index is an index that tracks the performance of 50 mega cap companies in United States.

S&P 500 Top 50 Index: Periodic performance:

S&P 500 Top 50 Index
source Mirae MF

How is different from Motilal SPX 500 Index Fund?

Motilal SPX 500 index fund is a broad based one and Mirae ETF has top 50 stocks. The SPX 500 Top 50 has slightly outperformed the SPX 600 index, due to its top 50 concentration. 

The Top 50 Index has outperformed S&P 500 Index and Nifty 50 Index in 7 out of 11 calendar years & 8 out of 11 calendar years respectively.


Conclusion: As part of diversification, global exposure is necessary, especially via index funds. There is little to choose between Motilal SPX 500 fund and Mirae FOF, as both offer similar returns. The expense ratio and tracking error of the funds, could make a difference.