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Research done by Cafemutual on ETFs shows that 9 schemes have tracking error of just 0.03 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 S&P BSE Sensex ETF are the top nine 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, DSP Nifty Midcap 150 Quality 50 ETF and ICICI Prudential S&P BSE Midcap Select ETF have tracking error of 0.08. While ICICI Prudential Nifty Midcap 150 ETF and Nippon India ETF Nifty Midcap 150 have tracking error of 0.09 and 0.11 respectively.
Aditya Birla Sun Life Gold ETF, UTI Gold ETF and IDBI 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. ICICI Prudential Nifty Bank ETF, ICICI Prudential Nifty Bank ETF, Nippon India ETF Nifty Bank BeES, Nippon India Nifty Pharma ETF, SBI Nifty Bank ETF are the 5 schemes that have 0.02 tracking error.
Here are the top 3 ETFs across all categories with the lowest tracking error.
Large Cap
|
Ranking |
Scheme name |
Tracking |
|
1 (9 scheme)
|
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 S&P BSE Sensex ETF
|
0.03
|
|
2 (7 schemes)
|
Aditya Birla Sun Life S&P BSE Sensex ETF Axis Nifty 50 ETF HDFC Nifty 50 ETF ICICI Prudential Nifty 100 ETF Kotak S&P BSE Sensex ETF Quantum Nifty 50 ETF SBI S&P BSE 100 ETF
|
0.04 |
|
3 (4 schemes)
|
Aditya Birla Sun Life Nifty 50 ETF Aditya Birla Sun Life N Nippon India ETF Nifty 100 Nippon India ETF S&P BSE Sensex
|
0.05 |
Mid Cap
|
Ranking |
Scheme name |
Tracking |
|
1 (2 scheme)
|
DSP Nifty Midcap 150 Quality 50 ETF ICICI Prudential S&P BSE Midcap Select ETF |
0.08
|
|
2 (1 scheme)
|
ICICI Prudential Nifty Midcap 150 ETF |
0.09 |
|
3 (1 scheme)
|
Nippon India ETF Nifty Midcap 150 |
0.11 |
Gold
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
Aditya Birla Sun Life Gold ETF |
0.26
|
|
2 (1 scheme)
|
UTI Gold ETF |
0.27 |
|
3 (1 scheme)
|
IDBI Gold ETF |
0.32
|
Debt
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
Nippon India ETF Nifty 1D Rate Liquid BeES |
0.03 |
|
2 (1 scheme)
|
DSP NIFTY 1D Rate Liquid ETF |
0.06 |
|
3 (1 scheme)
|
SBI Nifty 10 yr Benchmark G-Sec ETF
|
0.14 |
International
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
Motilal Oswal NASDAQ 100 ETF |
0.12 |
|
2 (1 scheme)
|
Motilal Oswal Nasdaq Q 50 ETF
|
1.39 |
Factor
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
ICICI Prudential Nifty 100 Low Volatility 30 ETF |
0.03
|
|
2 (1 scheme)
|
SBI Nifty 200 Quality 30 ETF
|
0.04 |
|
3 (1 scheme)
|
ICICI Prudential Nifty50 Value 20 ETF |
0.06
|
Flexi
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
ICICI Prudential S&P BSE 500 ETF |
0.03 |
Thematic
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
Aditya Birla Sun Life Nifty Healthcare ETF |
0.02
|
|
2 (1 scheme)
|
ICICI Prudential Nifty Private Bank ETF |
0.03 |
|
3 (5 scheme)
|
ICICI Prudential Nifty Bank ETF ICICI Prudential Nifty Bank ETF Nippon India ETF Nifty Bank BeES Nippon India Nifty Pharma ETF SBI Nifty Bank ETF
|
0.04
|
This research also carries tracking difference of 122 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, Tata Nifty 50 ETF ICICI Prudential S&P BSE Sensex ETF, Motilal Oswal Nifty 50 ETF, Aditya Birla Sun Life N, ICICI Prudential Nifty 50 ETF, LIC MF Nifty 50 ETF are the top ranked ETFs in large cap category.
DSP Nifty Midcap 150 Quality 50 ETF, ICICI Prudential S&P BSE Midcap Select ETF, Nippon India ETF Nifty Midcap 150 have tracking difference of -0.18, -0.24 and -0.30, lowest in mid cap space.
Among thematic ETFs, Aditya Birla Sun Life Nifty Healthcare ETF and Kotak Nifty IT ETF have the lowest tracking difference of -0.04 and -0.05 respectively. Axis NIFTY IT ETF and ICICI Prudential Nifty Bank ETF have the tracking difference -0.07.
Here are the top 3 ETFs across all categories with the lowest tracking difference.
Large Cap
|
Ranking |
Scheme name |
Tracking |
|
1 (2 scheme)
|
Aditya Birla Sun Life Nifty 50 ETF Tata Nifty 50 ETF |
-0.02
|
|
2 (2 schemes)
|
ICICI Prudential S&P BSE Sensex ETF Motilal Oswal Nifty 50 ETF
|
-0.03 |
|
3 (3 schemes)
|
Aditya Birla Sun Life N ICICI Prudential Nifty 50 ETF LIC MF Nifty 50 ETF
|
-0.04 |
Mid Cap
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
DSP Nifty Midcap 150 Quality 50 ETF |
-0.18 |
|
2 (1 scheme)
|
ICICI Prudential S&P BSE Midcap Select ETF |
-0.24 |
|
3 (1 scheme)
|
Nippon India ETF Nifty Midcap 150 |
-0.30 |
Gold
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
IDBI Gold ETF
|
-0.45 |
|
2 (1 scheme)
|
Invesco India Gold ETF
|
-0.85 |
|
3 (1 scheme)
|
ICICI Prudential Gold ETF
|
-0.90
|
Debt
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
Nippon India ETF Nifty CPSE Bond Plus SDL Sep 2024 50:50 |
-0.05 |
|
2 (1 scheme)
|
SBI Nifty 10 yr Benchmark G-Sec ETF |
-0.07
|
|
3 (1 scheme)
|
BHARAT Bond ETF - April 2032 |
-0.09 |
International
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
Motilal Oswal Nasdaq Q 50 ETF |
-0.33 |
|
2 (1 scheme)
|
Motilal Oswal NASDAQ 100 ETF |
-0.69 |
Factor
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
Kotak Nifty 50 Value 20 ETF |
-0.16 |
|
2 (1 scheme)
|
Nippon India ETF Nifty Dividend Opportunities 50 |
-0.19
|
|
3 (1 scheme)
|
ICICI Prudential Nifty50 Value 20 ETF |
-0.20 |
Flexi
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
ICICI Prudential S&P BSE 500 ETF |
-0.33 |
Thematic
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme)
|
Aditya Birla Sun Life Nifty Healthcare ETF |
-0.04 |
|
2 (1 scheme)
|
Kotak Nifty IT ETF |
-0.05
|
|
3 (2 scheme)
|
Axis NIFTY IT ETF ICICI Prudential Nifty Bank ETF |
-0.07
|
