Top 5 Information Technology ETFs

The technology sector has been a driving force behind the stock market’s growth for years, and for investors seeking a diversified approach to capturing this potential, Information Technology (IT) ETFs offer a compelling option. This article explores the top 5 IT ETFs that have completed a full 3-year period, delving into their performance. Whether you are a seasoned tech investor or just starting to explore this dynamic sector, this can help you identify the IT ETFs that best align with your investment strategy.

Following are the top 5 IT ETFs:

Data as of July 02, 2024

1. Kotak Nifty IT ETF
   

   Kotak Nifty IT ETF, launched on 1st March 2021 by Kotak Mahindra Mutual Fund, falls under the category of Equity ETFs. It follows the NIFTY 50 TRI benchmark and has a total expense ratio (TER) of 0.18% as of 31st May 2024. The fund, with total assets amounting to Rs 184.23 crore and a turnover rate of 63.4%, has no exit load and requires a minimum investment of Rs 5,000, with no minimum top-up amount. As of 2nd July 2024, the NAV stands at Rs 39.60. The fund has achieved a CAGR of 14.51% since inception, compared to its benchmark’s 14.32%.

2. ICICI Prudential Nifty IT ETF
   

   ICICI Prudential Nifty IT ETF, managed by ICICI Prudential Mutual Fund, is an open-ended equity scheme launched on 05-08-2020. It benchmarks against the NIFTY IT TRI and has a Total Expense Ratio (TER) of 0.2%. With total assets amounting to Rs 409.68 crore and a turnover rate of 67%, this ETF requires a minimum investment of Rs 5,000, with no minimum top-up amount. As of 02-07-2024, the Net Asset Value (NAV) is 39.77. Since its inception, it has achieved a Compound Annual Growth Rate (CAGR) of 22.24%, outperforming its benchmark’s 15.59%.

3. Axis IT ETF
   

   The Axis IT ETF, managed by Axis Mutual Fund was launched on 05-03-2021 and is classified as an open-ended scheme. The fund has a Total Expense Ratio (TER) of 0.22% as of 31-05-2024, with total assets amounting to Rs 126.7 crore on the same date. Investors can start with a minimum investment of Rs 100, with no minimum top-up requirement and no exit load. As of 02-07-2024, the NAV stands at 395.19. The fund has achieved a CAGR of 13.92% since inception, compared to its benchmark’s 15.59%.

4. Nippon India ETF Nifty IT
   

   The Nippon India ETF Nifty IT, launched on June 29, 2020, by Nippon India Mutual Fund. It tracks the NIFTY IT TRI benchmark and has a Total Expense Ratio (TER) of 0.22% as of May 31, 2024. This open-ended scheme requires a minimum investment of Rs 5,000, with no minimum top-up amount. As of May 31, 2024, the fund has total assets amounting to Rs 2,332.29 crore and a turnover rate of 40%, with no exit load. The Net Asset Value (NAV) as of July 2, 2024, is ₹39.83. Since its inception, the fund has achieved a Compound Annual Growth Rate (CAGR) of 28.11%, outperforming its benchmark, which has a CAGR of 15.59%.

5. SBI Nifty IT ETF
   

   The SBI Nifty IT ETF, managed by SBI Mutual Fund, falls under the category of equity ETFs and was launched on October 5, 2020. It is benchmarked against the NIFTY IT TRI and has a Total Expense Ratio (TER) of 0.22% as of May 31, 2024. This open-ended scheme requires a minimum investment of Rs 5,000 with no minimum top-up. As of May 31, 2024, the fund’s total assets amount to Rs 80.67 crore, with a turnover rate of 84% and no exit load. The Net Asset Value (NAV) on July 2, 2024, was Rs 397.61. Since inception, the fund has achieved a Compound Annual Growth Rate (CAGR) of 17.98%, outperforming its benchmark’s 15.59%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.