- Ministry of Finance recently included four public sector undertakings (PSUs) NTPC, NLC India, SJVN and NBCC in the list of Central Public Sector Enterprises (CPSE) Exchange Traded Fund (ETF).
- CPSE ETF, which functions like a mutual fund scheme, comprises scrips of 10 PSUs — ONGC, Coal India, IOC, GAIL (India), Oil India, PFC, Bharat Electronics, REC, Engineers India and Container Corporation of India.
About Exchange Traded Funds (ETF)
- ETFs are index funds that are listed and traded on stock exchanges just like regular shares.
- They are a basket of stocks with assigned weights that reflect the composition of an index.
- The ETFs trading value is based on the net asset value of the underlying stocks that it represents.
- They enable investors to gain broad exposure to entire stock markets in different countries and specific sectors with relative ease, on a real-time basis and at a lower cost than many other forms of investing.
- The ETF is aimed at helping speed up the government’s disinvestment programme.
About Bharat 22 ETF
- Bharat 22 ETF comprises of stocks of 22 Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSBs) and Specified Undertaking of Unit Trust of India (SUUTI).
- Bharat 22 ETF is managed by ICICI Prudential Mutual Fund.
- The foundation of Bharat 22 ETF was laid by the government in the Union Budget 2017.