Mirae Asset Mutual Fund Launches Two New ETFs Targeting Metal and PSU Bank Sectors

Mirae Asset Mutual Fund Launches Two New ETFs Targeting Metal and PSU Bank Sectors

Mirae Asset Mutual Fund has announced the launch of two new Exchange Traded Funds (ETFs), designed to provide investors with targeted exposure to India's metal and PSU banking sectors. These open-ended schemes aim to track the performance of the Nifty Metal Total Return Index and the Nifty PSU Bank Total Return Index, respectively.

Details of the ETFs

1. Mirae Asset Nifty Metal ETF: This ETF is structured to replicate the performance of the Nifty Metal Total Return Index, offering investors the potential to generate returns in line with the index, before accounting for expenses. The ETF focuses on providing exposure to 15 leading stocks in the metals and mining sector, listed on the National Stock Exchange (NSE). These include companies involved in the extraction, processing, and distribution of metals such as steel, aluminium, zinc, copper, and iron ore. The subscription period for this ETF opens on September 20, 2024.

2. Mirae Asset PSU Bank ETF: The second offering, the PSU Bank ETF, tracks the Nifty PSU Bank Total Return Index, which consists of publicly listed Indian Public Sector Undertaking (PSU) banks on the NSE. By investing in this ETF, investors gain exposure to the performance of key PSU banks. The new fund offer (NFO) for this ETF begins on September 24, 2024, and will re-open for continuous trading from October 3, 2024.

NFO Timeline

The subscription period for both ETFs will remain open until September 30, 2024. After the NFO closes, investors will be able to trade in the ETFs on a continuous basis, starting from October 3, 2024.

Fund Manager’s Insights

Siddharth Srivastava, Head of ETF Products and Fund Manager at Mirae Asset Investment Managers (India), shared insights about the new ETFs: “The Nifty Metal ETF will enable investors to take tactical exposure to short-term metal and commodity cycles or long-term exposure, given India's focus on infrastructure and manufacturing.”

He added, “The PSU Bank ETF aims to provide concentrated exposure to the PSU banking sector, which has shown significant growth and profitability potential.”

Why These ETFs?

• Nifty Metal ETF: Investors can utilize this ETF to tap into the cyclical nature of the metal and commodity markets or leverage India's long-term infrastructure growth. It provides a diversified portfolio of metal and mining companies without the need for individual stock picking.

• PSU Bank ETF: As public sector banks continue to show signs of profitability and growth, this ETF offers focused exposure to a key sector that is poised for further expansion.

Both ETFs offer investors a way to invest in specific sectors of the Indian economy, allowing for either tactical short-term plays or longer-term positioning based on broader market trends.