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HDFC Mutual Fund has launched two smart beta ETFs - HDFC NIFTY200 Momentum 30 ETF and HDFC NIFTY100 Low Volatility 30 ETF.
Smart beta investing involves stock selection and weighting that is done based on pre-defined factors, as defined in the underlying index methodology. These ETFs aim to generate returns slightly higher than ETFs within the framework of passive management.
The underlying indices of HDFC NIFTY200 Momentum 30 ETF and HDFC NIFTY100 Low Volatility 30 ETF have generated higher long-term returns than the NIFTY 200 TRI and the NIFTY 100 TRI, respectively, said a press release.
Talking about the funds, Navneet Munot, MD and CEO, HDFC said, “Smart Beta ETFs offer one-shot diversification of portfolio at a low cost, and is proven tool for investors who seek returns over the long-term.”
