According to reports from Mint, Nippon India ETF Nifty PSU Bank BeES leads the category with assets under management of ₹4,078 crore, followed by Kotak Nifty PSU Bank ETF at ₹2,263 crore and DSP Nifty PSU Bank ETF at ₹302 crore. The Nifty PSU Bank Index tracks the performance of 12 public sector banks listed on the National Stock Exchange (NSE). These ETFs replicate the index by investing in constituent stocks in similar proportions, aiming to deliver returns that closely mirror the benchmark. ETFs offer investors greater liquidity and flexibility as they can be bought and sold throughout the trading day.
As reported by Mint, the Nifty PSU Bank Index delivered strong long-term returns with a 5-year CAGR of 28.57%, taking a ₹1 lakh investment to approximately ₹3.51 lakh over five years. Over three years, the same investment would have more than doubled to ₹2.02 lakh with a CAGR of 26.34%. The one-year performance stood at 18.81%, with a ₹1 lakh investment growing to around ₹1.19 lakh. Over the last 10 years, the index generated a CAGR of 12.54%, taking the investment value to ₹3.26 lakh.
According to Value Research data reported by Mint, Nippon India PSU Bank ETF generated a 5-year CAGR of 27.80%, while Kotak Nifty PSU Bank ETF delivered 27.77% returns over the same period. The one-year performance remained largely in line with the benchmark, with DSP Nifty PSU Bank ETF giving 18.66%, Mirae Asset Nifty PSU Bank ETF at 18.56%, and ICICI Prudential Nifty PSU Bank ETF at 18.31%. A ₹1 lakh investment made a year ago in any of these three ETFs would have grown to around ₹1.18 lakh.
As reported by Mint, an investment of ₹1 lakh made five years ago would have grown to approximately ₹3.41 lakh in both Nippon India PSU Bank ETF and Kotak Nifty PSU Bank ETF. The returns from these ETFs are broadly in line with the benchmark Nifty PSU Bank Index TRI, which delivered a 5-year CAGR of 28.57%. The 5-year CAGR of 27.80% for Nippon India PSU Bank ETF and 27.77% for Kotak Nifty PSU Bank ETF closely matches the benchmark performance, demonstrating effective index replication by these leading ETFs.
