New Exchange Traded Fund Launched

2019 ias preliminary exam test series

The Union Finance Minister Arun Jaitley launched a new Exchange Traded Fund (ETF) by the name BHARAT 22.

Bharat 22 consists of 22 stocks of CPSE’s, PSB’s & strategic holding of SUUTI (list as in Annexure).

Compared to energy heavy CPSE ETF, Bharat 22 is a well Diversified portfolio with 6 sectors (Basic Materials, Energy, Finance, FMCG,  Industrials & Utilities).

Bharat 22 is an ETF that will track the performance of 22 stocks the government plans to pare its stake in. An ETF (exchange traded fund) pools money from investors and channels it into a basket of stocks, mirroring an index and its performance.

An ETF unit represents a slice of the fund; issued units are listed on exchanges for anyone to buy or sell at the quoted price.

The Bharat 22 Index will be rebalanced annually. ICICI Prudential AMC will be the ETF Manager and Asia Index Private Limited (JV BSE and S& P Global) will be the Index Provider.

Bharat 22 Index Constituents:

Sr. No. Company Name Basic Industry Weight (%)
1 National Aluminium Co Ltd Basic Materials 4.4
Total – Basic Materials (%) 4.4
2 Oil & Natural Gas Corp Ltd Energy 5.3
3 Indian Oil Corp Ltd Energy 4.4
4 Bharat Petroleum Corp Ltd Energy 4.4
5 Coal India Ltd Energy 3.3
Total – Energy (%) 17.5
6 State Bank of India Finance 8.6
7 Axis Bank Ltd Finance 7.7
8 Bank of Baroda Finance 1.4
9 Rural Electrification Corp Ltd Finance 1.3
10 Power Finance Corp Ltd Finance 1.0
11 Indian Bank Finance 0.2
Total – Finance (%) 20.3
12 ITC Ltd FMCG 15.2
Total – FMCG (%) 15.2
13 Larsen & Toubro Ltd Industrials 17.1
14 Bharat Electronics Ltd Industrials 3.3
15 Engineers India Ltd Industrials 1.5
16 NBCC (India) Ltd Industrials 0.6
Total – Industrials (%) 22.6
17 Power Grid Corp of India Ltd Utilities 7.9
18 NTPC Ltd Utilities 6.7
19 Gail India Ltd Utilities 3.7
20 NHPC Ltd Utilities 1.2
21 NLC India Ltd Utilities 0.3
22 SJVN Ltd Utilities 0.2
Total – Utilities (%) 20.0

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