The Nippon India ETF Nifty IT, commonly known by its ticker symbol ITBEES, is an exchange-traded fund (ETF) that aims to replicate the performance of the NIFTY IT. This index comprises the top information technology companies listed in India, providing investors with targeted exposure to the country’s IT sector.
Key Features of ITBEES:
- Investment Objective: The fund seeks to provide investment returns closely corresponding to the total returns of the securities represented by the NIFTY IT, subject to tracking errors.
- Fund Inception: June 26, 2020.
- Expense Ratio: 0.22%, making it a cost-effective option for investors seeking exposure to the IT sector.
- Assets Under Management (AUM): Approximately ₹2,626.79 crore as of December 23, 2024.
- Fund Manager: Mr. Himanshu Mange, managing the fund since December 2023.
What companies are in ITBEes?
The ITBEES ETF replicates the NIFTY IT, which includes some of the largest and most prominent IT companies listed in India. Here’s a breakdown of the companies in ITBEES as of the latest data, along with their approximate weightings:
| Company | Weight (%) |
| Infosys Ltd | ~26.19% |
| Tata Consultancy Services (TCS) | ~23.43% |
| HCL Technologies | ~10.48% |
| Tech Mahindra | ~10.42% |
| Wipro Ltd | ~7.84% |
| Persistent Systems | ~6.01% |
| Coforge Ltd | ~5.52% |
| LTIMindtree | ~5.47% |
These companies together account for a significant portion of the Indian IT sector’s market capitalization. The portfolio composition may change periodically to reflect the changes in the NIFTY IT.
Nifty IT BeES share price
As of December 24, 2024, the Nippon India ETF Nifty IT (ITBEES) is trading at approximately ₹47.20 per unit on the National Stock Exchange (NSE).
Over the past 52 weeks, the ETF has experienced a high of ₹58.70 and a low of ₹39.13.
The ETF’s Net Asset Value (NAV) as of December 23, 2024, is ₹47.09.
Best IT ETF in India
The best IT ETF in India depends on individual preferences like expense ratio, tracking efficiency, AUM (Assets Under Management), and past performance. Here are some of the top IT ETFs in India:
1. Nippon India ETF Nifty IT (ITBEES)
- Underlying Index: IT Index.
- Expense Ratio: ~0.22%.
- AUM: ~₹2,600+ crore.
- Top Holdings: Infosys, TCS, HCL Tech, Tech Mahindra.
- Reason to Consider: It is one of the largest and most liquid IT ETFs in India, making it easier to trade.
2. ICICI Prudential IT ETF
- Underlying Index: NIFTY IT.
- Expense Ratio: ~0.25%.
- AUM: Moderate compared to ITBEES.
- Top Holdings: Similar to ITBEES (Infosys, TCS, etc.).
- Reason to Consider: Offers exposure to the same IT Index with competitive performance and a slightly different expense ratio.
3. Kotak IT ETF
- Underlying Index: IT Index.
- Expense Ratio: ~0.30%.
- AUM: Smaller compared to ITBEES and ICICI Prudential IT ETF.
- Reason to Consider: Suitable for investors looking for a lower-tracked alternative in the IT sector.
Factors to Consider When Choosing the Best IT ETF:
- Expense Ratio: Lower expense ratios are preferable as they reduce the cost of investing.
- Tracking Error: The ETF with the least deviation from its underlying index is ideal.
- Liquidity: Higher trading volume ensures that buying and selling is easy without significant price deviation.
- AUM Size: Larger AUM often indicates better trust and efficiency in fund management.
Top Pick for 2024
Based on AUM, liquidity, and expense ratio, Nippon India ETF Nifty IT (ITBEES) is widely regarded as the most popular and best-performing IT ETF in India. It provides consistent returns and better liquidity compared to peers.
Comparing IT ETFs:
| Parameter | ITBEES | ICICI Prudential IT ETF | Kotak IT ETF | Aditya Birla IT ETF |
| Expense Ratio | 0.22% | 0.25% | 0.30% | 0.30% |
| AUM (₹ Cr) | ~2,626 | Moderate | Smaller | Smaller |
| Liquidity | High | Moderate | Low | Low |
| Underlying Index | NIFTY IT Index | NIFTY IT Index | NIFTY IT Index | NIFTY IT Index |
| Top Holdings | Infosys, TCS, HCL, Wipro | Infosys, TCS, HCL, Wipro | Infosys, TCS, HCL, Wipro | Infosys, TCS, HCL, Wipro |
Why Invest in IT ETFs?
- Focused Exposure: IT ETFs provide targeted exposure to India’s high-performing IT sector.
- Diversification: By holding multiple IT stocks, they reduce the risk of investing in a single company.
- Cost-Effectiveness: Low expense ratios make them cheaper than actively managed funds.
- Liquidity: ETFs like ITBEES are traded on stock exchanges, ensuring ease of entry and exit.
- Potential Growth: The Indian IT sector is a global leader, benefiting from increasing digital transformation and outsourcing trends.
Risks of Investing in IT ETFs
- Sector-Specific Risks: Dependency on global IT demand and exchange rate fluctuations.
- Cyclical Performance: IT stocks can underperform during global economic downturns.
- Tracking Errors: ETFs may not perfectly match the performance of the underlying index.
How to Invest in IT ETFs?
- Stock Exchange: IT ETFs are traded like stocks on NSE/BSE. Use your demat and trading account.
- SIP in ETFs: Some brokers allow SIPs in ETFs for gradual investments.
- Direct Investment: You can invest directly through fund houses like Nippon India or ICICI Prudential.
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