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Research done by Cafemutual on ETFs shows that 10 schemes have tracking error of just 0.3 in the large cap ETF category.
The data shows - ICICI Prudential Nifty 50 ETF, ICICI Prudential S&P BSE Sensex ETF, Invesco India Nifty 50 ETF, Kotak Nifty 50 ETF, Mirae Asset Nifty 50 ETF, Nippon India ETF Nifty 50 BeES, SBI Nifty 50 ETF, SBI S&P BSE Sensex ETF, UTI Nifty 50 ETF, UTI S&P BSE Sensex ETF are the top ten funds with the lowest tracking error.
Tracking error is the annualized difference between standard deviation of the fund and its benchmark. Simply put, tracking error is the extent to which returns of an index fund has deviated from its underlying index.
In mid cap space, ICICI Prudential S&P BSE Midcap Select ETF, ICICI Prudential Nifty Midcap 150 ETF, Nippon India ETF Nifty Midcap 150 have the lowest tracking error of 0.7, 0.09, and 0.11, respectively.
Nippon India ETF Gold BeES, Aditya Birla Sun Life Gold ETF and UTI Gold ETF have the lowest tracking error among gold ETFs.
Among thematic ETFs, Aditya Birla Sun Life Nifty Healthcare ETF and ICICI Prudential Nifty Private Bank ETF are the top two ETFs with the tracking error of 0.02 and 0.03.
Here are the top 3 ETFs across all categories with the lowest tracking error.
Large Cap
|
Rankings |
Scheme Name |
Tracking |
|
1 (10 schemes) |
ICICI Prudential Nifty 50 ETF |
0.3 |
|
ICICI Prudential S&P BSE Sensex ETF |
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|
Invesco India Nifty 50 ETF |
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Kotak Nifty 50 ETF |
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|
Mirae Asset Nifty 50 ETF |
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Nippon India ETF Nifty 50 BeES |
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|
SBI Nifty 50 ETF |
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SBI S&P BSE Sensex ETF |
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|
UTI Nifty 50 ETF |
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|
UTI S&P BSE Sensex ETF |
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|
2 (6 schemes) |
Aditya Birla Sun Life S&P BSE Sensex ETF |
0.4 |
|
Axis Nifty 50 ETF |
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ICICI Prudential Nifty 100 ETF |
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Kotak S&P BSE Sensex ETF |
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|
Quantum Nifty 50 ETF |
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SBI S&P BSE 100 ETF |
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|
3 (4 schemes) |
Aditya Birla Sun Life Nifty 50 ETF |
0.5 |
|
HDFC Nifty 50 ETF |
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Nippon India ETF Nifty 100 |
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|
Nippon India ETF S&P BSE Sensex |
Mid Cap
|
Rankings |
Scheme Name |
Tracking |
|
1 |
ICICI Prudential S&P BSE Midcap Select ETF |
0.7 |
|
2 |
ICICI Prudential Nifty Midcap 150 ETF |
0.9 |
|
3 |
Nippon India ETF Nifty Midcap 150 |
0.11 |
Sector
|
Rankings |
Scheme Name |
Tracking |
|
1 |
Aditya Birla Sun Life Nifty Healthcare ETF |
0.02 |
|
2 |
ICICI Prudential Nifty Private Bank ETF |
0.03 |
|
3 (5 schemes) |
ICICI Prudential Nifty Bank ETF |
0.04 |
|
ICICI Prudential Nifty Healthcare ETF |
||
|
Nippon India ETF Nifty Bank BeES |
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|
SBI Nifty Bank ETF |
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|
UTI Nifty Bank ETF |
Gold
|
Rankings |
Scheme Name |
Tracking |
|
1 |
Nippon India ETF Gold BeES |
0.18 |
|
2 |
Aditya Birla Sun Life Gold ETF |
0.26 |
|
3 |
UTI Gold ETF |
0.27 |
Thematic
|
Rankings |
Scheme Name |
Tracking |
|
1 |
Mirae Asset Nifty Financial Services ETF |
0.06 |
|
2 |
Mirae Asset Nifty 100 ESG Sector Leaders ETF |
0.07 |
|
3 |
Nippon India ETF Nifty India Consumption |
0.09 |
This research also carries tracking difference of 116 ETFs across categories. Tracking difference is simply the difference between returns generated by the fund and its benchmark.
With the lowest tracking difference of -0.02, -0.03 and -0.04, Aditya Birla Sun Life Nifty 50 ETF, HDFC S&P BSE Sensex ETF, ICICI Prudential S&P BSE Sensex ETF, ICICI Prudential Nifty 50 ETF are the top ranked ETFs in large cap category.
ICICI Prudential S&P BSE Midcap Select ETF, Nippon India ETF Nifty Midcap 150, ICICI Prudential Nifty Midcap 150 ETF have tracking error of -0.24, -0.26 and -0.30, lowest in mid cap space.
Among thematic ETFs, Mirae Asset Nifty Financial Services ETF, BHARAT 22 ETF and ICICI Prudential Nifty India Consumption ETF have the lowest tracking error of -0.12, -0.28, and -0.29.
Here are the top 3 ETFs across all categories with the lowest tracking difference.
Large cap
|
Rankings |
Scheme Name |
Tracking |
|
1 |
Aditya Birla Sun Life Nifty 50 ETF |
-0.02 |
|
2 (2 schemes) |
HDFC S&P BSE Sensex ETF |
-0.03 |
|
ICICI Prudential S&P BSE Sensex ETF |
||
|
3 |
ICICI Prudential Nifty 50 ETF |
-0.04 |
Mid cap
|
Rankings |
Scheme Name |
Tracking |
|
1 |
ICICI Prudential S&P BSE Midcap Select ETF |
-0.24 |
|
2 |
Nippon India ETF Nifty Midcap 150 |
-0.26 |
|
3 |
ICICI Prudential Nifty Midcap 150 ETF |
-0.30 |
Thematic
|
Rankings |
Scheme Name |
Tracking |
|
1 |
Mirae Asset Nifty Financial Services ETF |
-0.12 |
|
2 |
BHARAT 22 ETF |
-0.28 |
|
3 |
ICICI Prudential Nifty India Consumption ETF |
-0.29 |
Sector
|
Rankings |
Scheme Name |
Tracking |
|
1 |
Aditya Birla Sun Life Nifty Healthcare ETF |
-0.04 |
|
2 |
ICICI Prudential Nifty Healthcare ETF |
-0.06 |
|
3 |
Axis NIFTY IT ETF |
-0.12 |
Gold
|
Rankings |
Scheme Name |
Tracking |
|
1 |
IDBI Gold ETF |
-0.34 |
|
2 |
Axis Gold ETF |
-0.46 |
|
3 |
ICICI Prudential Gold ETF |
-0.58 |
International
|
Rankings |
Scheme Name |
Tracking |
|
1 |
Nippon India ETF Hang Seng BeES |
-0.31 |
|
2 |
Motilal Oswal NASDAQ 100 ETF |
-0.58 |
