CPSE ETF may enter the top 10 equity scheme club

The government has introduced two large follow-on offers in the Central Public Sector Enterprise (CPSE) ETF, and hereafter, a second exchange-traded fund is set to enter the top 10 equity scheme club in India.

Until now, SBI ETF Nifty 50, which had the assets of Rs 15,520 crore, was the only ETF that was included in top 10 equity club. Thus, the index could have cracked into the group of largest schemes in terms of the asset size.

The CPSE ETF is known as the index of 10 state-owned companies, which covers, Oil India, Coal India and ONGC too. The government has divested its holdings in the crate of 10 companies with the help of its disinvestment scheme.

The government has recently introduced its third portion of CPSE ETF, worth Rs 2,500 crore, and this offer was subscribed four times nearly, and was listed recently.

CPSE ETF is handled by Goldman Sachs Asset Manager, thereafter acquired by Reliance Mutual Fund 2 years back, while it had assets of Rs 7,432 crore, which are expected to increase by Rs 9,900 crore after the third tranche.