An exchange traded fund (ETF) tracking 10 central government owned companies has underperformed the National Stock Exchange’s benchmark 50-stock Nifty index this year, thanks in part to its concentration of energy stocks that have shed value.
The Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF) index tracks the NSE Central Public Sector Enterprises (NSE CPSE index) of 10 public sector enterprises. According to Bloomberg data, the Nifty CPSE index lost 13.35% in 2019, while the Nifty is down just 0.6%. In August alone, the Nifty CPSE index fell 8.49%, while the Nifty is marginally down by 0.85%. Similarly, for the one year ended 3 September, Nifty CPSE index was down 24.68%, while the benchmark Nifty was down 6.77%.
