Mirae Asset launches India`s first EV-focused index ETF

Published on Jun 25, 2024 16:57

Mirae Asset Mutual Fund (MF) has launched Nifty EV and New Age Automotive ETF, India`s first Exchange Traded Fund (ETF) targeting the electric vehicle (EV) and new age automotive sector. The subscription window began on June 24th, 2024, and will close on July 5th, 2024. Investors can buy and sell shares on the exchange starting July 11th, 2024.

The ETF tracks the Nifty EV and New Age Automotive Total Return Index, launched in May 2024. This index comprises 33 companies across the EV and new age automotive spectrum, including manufacturers of electric vehicles, hybrids, batteries, raw materials for EVs, and autonomous vehicle technologies. Major holdings currently include Mahindra & Mahindra, Bajaj Auto, and Maruti Suzuki. Thematic weightings are implemented within the index, limiting traditional automakers to a maximum 40% allocation and capping any single holding in that category at 8%.

As of May 31st, 2024, the Nifty EV & New Age Automotive Index boasts total return of 52.78% over the past one year, 30.73% CAGR over the past five years, and 20.33% CAGR since its inception in April 2018.

This ETF offers a convenient way for investors to participate in the potential growth of the EV and new age automotive sector. With anticipated acceleration in EV adoption, the ETF has the potential to deliver long-term capital appreciation.