Research done by Cafemutual on ETFs shows that Axis Nifty 50 ETF, 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 11 funds that have tracking error of just 0.03 in the large cap ETF category.
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 ETF have 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.
Among gold ETFs, UTI Gold ETF, Nippon India ETF Gold BeES, IDBI Gold ETF have the lowest tracking error. Similarly, Nippon India Silver ETF, Aditya Birla Sun Life Silver ETF, ICICI Prudential Silver ETF have lowest tracking error among silver ETFs.
In the thematic space, Aditya Birla Sun Life Nifty Healthcare ETF has the tracking error of 0.02 whereas ICICI Prudential Nifty Bank ETF, ICICI Prudential Nifty
Healthcare ETF, Mirae Asset Nifty India Manufacturing ETF, Nippon India ETF Nifty Bank BeES, Nippon India Nifty Pharma ETF are the 5 schemes which have the tracking error of 0.04.
Here are the top 3 ETFs across all categories with the lowest tracking error.
Large Cap:
|
Ranking |
Scheme name |
Tracking |
|
1 (11 schemes) |
Axis Nifty 50 ETF 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 |
0.03 |
|
2 (7 schemes) |
Aditya Birla Sun Life Nifty 50 ETF Aditya Birla Sun Life S&P BSE Sensex 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) |
DSP NIFTY 50 Equal Weight ETF HDFC S&P BSE Sensex ETF Nippon India ETF Nifty 100 Nippon India ETF S&P BSE Sensex |
0.05 |
Mid Cap:
|
Ranking |
Scheme name |
Tracking |
|
1 (2 schemes) |
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 |
0.10 |
Sectoral/Thematic:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
Aditya Birla Sun Life Nifty Healthcare ETF |
0.02 |
|
2 (5 schemes)
|
ICICI Prudential Nifty Bank ETF ICICI Prudential Nifty Healthcare ETF Mirae Asset Nifty India Manufacturing ETF Nippon India ETF Nifty Bank BeES Nippon India Nifty Pharma ETF |
0.04 |
|
3 (3 schemes) |
Mirae Asset Nifty Financial Services ETF SBI Nifty Consumption ETF UTI Nifty Bank ETF |
0.05 |
Gold:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
UTI Gold ETF |
0.13 |
|
2 (1 scheme) |
Nippon India ETF Gold BeES |
0.17 |
|
3 (1 scheme) |
IDBI Gold ETF |
0.22 |
Silver:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
Nippon India Silver ETF |
0.73 |
|
2 (1 scheme) |
Aditya Birla Sun Life Silver ETF |
0.80 |
|
3 (1 scheme) |
ICICI Prudential Silver ETF |
6.00 |
Debt:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
Nippon India ETF Nifty 1D Rate Liquid BeES |
0.03 |
|
2 (1 scheme) |
SBI Nifty 10 yr Benchmark G-Sec ETF |
0.13 |
|
3 (1 scheme) |
ICICI Prudential S&P BSE Liquid Rate ETF |
0.31 |
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 |
International:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
Motilal Oswal NASDAQ 100 ETF |
0.13 |
|
2 (1 scheme) |
Nippon India ETF Hang Seng BeES |
0.34 |
|
3 (1 scheme) |
Motilal Oswal Nasdaq Q 50 ETF |
1.39 |
Flexi:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
ICICI Prudential S&P BSE 500 ETF |
0.03 |
This research also carries tracking difference of 127 ETFs across categories. Tracking difference is the difference between returns generated by ETF and its benchmark.
With the lowest tracking difference of -0.01, -0.02 and -0.04, Tata Nifty 50 ETF, Aditya Birla Sun Life Nifty 50 ETF, ICICI Prudential S&P BSE Sensex ETF, LIC MF Nifty 50 ETF, LIC MF S&P BSE Sensex ETF, Motilal Oswal Nifty 50 ETF, ICICI Prudential Nifty 50 ETF, Quantum 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 -0.17, -0.23 and -0.29, lowest in mid cap space.
Among thematic ETFs, Kotak Nifty IT ETF, Aditya Birla Sun Life Nifty Healthcare ETF and Axis NIFTY IT ETF have the lowest tracking difference of -0.02, -0.05 and -0.06 respectively.
Here are the top 3 ETFs across all categories with the lowest tracking difference.
Large Cap:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
Tata Nifty 50 ETF |
-0.01 |
|
2 (5 scheme) |
Aditya Birla Sun Life Nifty 50 ETF ICICI Prudential S&P BSE Sensex ETF LIC MF Nifty 50 ETF LIC MF S&P BSE Sensex ETF Motilal Oswal Nifty 50 ETF |
-0.02 |
|
3 (2 scheme) |
ICICI Prudential Nifty 50 ETF Quantum Nifty 50 ETF |
-0.04 |
Mid Cap:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
DSP Nifty Midcap 150 Quality 50 ETF |
-0.17 |
|
2 (1 scheme) |
ICICI Prudential S&P BSE Midcap Select ETF |
-0.23 |
|
3 (1 scheme) |
Nippon India ETF Nifty Midcap 150 |
-0.29 |
Sectoral/Thematic:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
Kotak Nifty IT ETF |
-0.02 |
|
2 (1 scheme) |
Aditya Birla Sun Life Nifty Healthcare ETF |
-0.05 |
|
3 (1 scheme) |
Axis NIFTY IT ETF |
-0.06 |
Gold:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
Aditya Birla Sun Life Gold ETF |
-0.19 |
|
2 (1 scheme) |
IDBI Gold ETF |
-0.52 |
|
3 (1 scheme) |
Invesco India Gold ETF |
-0.99 |
Silver:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
Aditya Birla Sun Life Silver ETF |
-0.62 |
|
2 (1 scheme) |
ICICI Prudential Silver ETF |
-0.67 |
Debt:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
BHARAT Bond ETF - April 2032 |
-0.06 |
|
2 (2 scheme) |
Nippon India ETF Nifty SDL Apr 2026 Top 20 Equal Weight SBI Nifty 10 yr Benchmark G-Sec ETF |
-0.07 |
|
3 (1 scheme) |
BHARAT Bond ETF - April 2031 |
-0.12 |
Factor:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
Kotak Nifty 50 Value 20 ETF |
-0.17 |
|
2 (1 scheme) |
ICICI Prudential Nifty 100 Low Volatility 30 ETF |
-0.46 |
|
3 (2 scheme) |
ICICI Prudential Nifty50 Value 20 ETF ICICI Prudential Nifty Alpha Low- Volatility 30 ETF |
-0.54 |
International:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
Mirae Asset Hang Seng TECH ETF |
-0.61 |
|
2 (1 scheme) |
Motilal Oswal Nasdaq Q 50 ETF |
-0.65 |
|
3 (1 scheme) |
Nippon India ETF Hang Seng BeES |
-0.78 |
Flexi Cap:
|
Ranking |
Scheme name |
Tracking |
|
1 (1 scheme) |
ICICI Prudential S&P BSE 500 ETF |
-0.31 |
