HDFC Mutual Fund launches three Smart Beta ETFs

HDFC Asset Management Company has launched three Smart Beta ETFs – NIFTY100 Quality 30 ETF, NIFTY50 Value 20 ETF, and NIFTY Growth Sectors 15 ETF.

Smart Beta investing involves stock selection and weighting that is done based on pre-defined factors. These investment strategies endeavor to provide better risk-adjusted returns than broad market cap weighted indices. According to the press release, the indices underlying the Smart Beta ETFs – the NIFTY100 Quality 30 TRI, NIFTY50 Value 20 TRI and NIFTY Growth Sectors 15 TRI – generated higher average rolling returns over 1, 3, 5 and 10 year horizons compared to the NIFTY 100 and NIFTY 50 TRI.

“Smart Beta investing is popular globally with AUM rising steadily. HDFC AMC is happy to expand index solution offerings for investors that are backed by empirical research. Smart Beta ETFs offer one-shot diversification of portfolio at a low cost, and is proven tool for investors who seek returns over the long-term. The fund house has 20 years of experience in managing passive funds, which comes with highly disciplined and robust Investment and Risk Management policies and processes,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company.