Bharat-22 ETF

News: Government has decided to launch the fourth tranche of Bharat-22 Exchange traded fund(ETF) on October 3,2019.

Facts:

What are Exchange traded fund(ETF)?

• Exchange Traded Funds (ETF) 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.
• The ETF is aimed at helping speed up the government’s disinvestment programme.

About Bharat-22 ETF:

• Bharat 22 is an ETF that will track the performance of 22 stocks of Central Public Sector Enterprises(CPSE), Public Sector Banks(PSB’s ) and strategic holding of SUUTI(Specified Undertaking of Unit Trust of India).
• The 22 stocks are diversified across six sectors such as(a) basic materials (b) energy (c)finance (d) FMCG (e) industrials and (f) utilities.
• Bharat-22 ETF is managed by the ICICI Prudential AMC while Asia Index is the index provider.