ICICI Prudential Asset Management Company (AMC) has announced the launch of the ICICI Prudential Healthcare Exchange Traded Fund (ETF). This ETF aims to provide returns that closely correspond to the returns of the underlying benchmark index in the same proportion, subject to tracking error. ICICI Prudential Healthcare ETF seeks to track Nifty Healthcare Total Returns Index (TRI). Nifty Healthcare TRI comprises 20 fast-growing Indian healthcare companies. In terms of index constituents, Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, Divi’s Laboratories, Cipla, and Apollo Hospitals Enterprise form the top five names of the index (data as of March 2021). This index has outperformed the Nifty 50 index in six out of the last 10 calendar years.
The ETF is said to be listed on National Stock Exchange (NSE) as well as on the Bombay Stock Exchange (BSE). Through this product, ICICI Prudential Healthcare ETF aims to provide investors with a choice to take exposure to multiple facets of healthcare.
The new fund offer (NFO) will open for subscription on May 6, 2021, and close on May 14, 2021.
Speaking on the launch of the product, Nimesh Shah, MD & CEO of ICICI Prudential AMC said, “ICICI Prudential Healthcare ETF provides exposure to a basket of securities in the healthcare sector. Given the rising health problems, lifestyle choices, and outbreak of epidemics, the healthcare sector has a strong potential to grow steadily in the coming decade. Also, the need for better healthcare facilities will always be a constant need, considering the large population of India. Therefore, this sector provides a good scope of investment.”