The Motilal Oswal NASDAQ 100 ETF is an exchange-traded fund that aims to replicate the performance of the NASDAQ-100 Index, providing Indian investors with exposure to the 100 largest non-financial companies listed on the NASDAQ Stock Market.As of July 2024, the Motilal Oswal NASDAQ 100 ETF is managed by fund manager Sunil Sawant.
Key Features:
- Investment Objective: The fund seeks to achieve returns corresponding to the NASDAQ-100 Index, subject to tracking errors.
- Asset Allocation: As of July 31, 2023, the ETF had 99.96% of its assets invested in equities and 0.04% in cash and cash equivalents.
- Fund Size: The Assets Under Management (AUM) stood at ₹6,616 crore as of July 31, 2023.
- Expense Ratio: The fund has an expense ratio of 0.58%.
- Net Asset Value (NAV): The NAV was ₹121.2805 as of August 23, 2023.
- Risk Profile: The ETF is categorized under the “Very High” riskometer level.
- Investment Horizon: Suitable for investors with a long-term horizon (five years or more) seeking diversification through exposure to international equities.
Investors can purchase units of this ETF through the Motilal Oswal Mutual Fund website or various brokerage platforms. It’s important to note that the fund’s performance is subject to market risks, and past performance does not guarantee future results.
Motilal Oswal NASDAQ 100 ETF Portfolio
The Motilal Oswal NASDAQ 100 ETF is designed to mirror the performance of the NASDAQ-100 Index, offering investors exposure to 100 of the largest non-financial companies listed on the NASDAQ Stock Market. As a passively managed fund, it replicates the index’s portfolio, providing diversification across various sectors.
Portfolio Composition:
- Number of Stocks: The ETF holds 101 stocks, closely aligning with its benchmark index.
- Sector Allocation: The fund’s investments are predominantly in large-cap companies across various sectors, with a significant portion allocated to technology-related industries.
- Top Holdings: While specific holdings are not detailed in the provided sources, the ETF aims to replicate the NASDAQ-100 Index, which includes major companies such as Apple Inc., Microsoft Corporation, Amazon.com Inc., Alphabet Inc., and Facebook Inc.
Investment Strategy:
This ETF employs a passive investment strategy, aiming to replicate the performance of the NASDAQ-100 Index by investing in the same companies and in similar proportions as the index. This approach offers investors exposure to a diversified portfolio of large-cap, non-financial companies listed on the NASDAQ Stock Market.
Key Metrics (as of July 31, 2023):
- Assets Under Management (AUM): ₹6,616 crore
- Expense Ratio: 0.58%
- Net Asset Value (NAV): ₹121.2805 (as of August 23, 2023)
- Risk Profile: Very High
Investors interested in this ETF can purchase units through the Motilal Oswal Mutual Fund website or various brokerage platforms. It’s important to note that the fund’s performance is subject to market risks, and past performance does not guarantee future results.
Motilal Oswal Nasdaq 100 ETF Returns
The Motilal Oswal NASDAQ 100 ETF aims to replicate the performance of the NASDAQ-100 Index, offering investors exposure to 100 of the largest non-financial companies listed on the NASDAQ Stock Market. Below is a summary of the fund’s performance:
| Metric | Value |
| Net Asset Value (NAV) | ₹175.78 |
| Assets Under Management (AUM) | ₹8,778 Crore |
| Expense Ratio | 0.58% |
| Top Holdings | Apple Inc., Nvidia Corp, Microsoft Corp |
| Top Sectors | Technology, Consumer Services, Healthcare |
Please note that past performance does not guarantee future results, and it’s essential to consider your investment objectives and risk tolerance before investing.
Performance Returns:
| Time Period | Fund Return | Category Return |
| 1 Year | 27.66% | 25.30% |
| 3 Years | 19.62% | 10.54% |
| 5 Years | 22.81% | 9.40% |
| Since Launch | 22.98% | – |
Motilal Oswal Nasdaq 100 ETF Direct-Growth
Here’s the growth performance of the Motilal Oswal Nasdaq 100 ETF Direct-Growth in a table format:
| Period | Return (%) |
| Since Inception | 28.19% |
| 1 Year | 27.91% |
| 3 Years | 19.47% |
| 5 Years | 18.54% |
The growth values reflect the fund’s performance over various time periods, showing its strong performance since inception. Please note that past performance is not necessarily indicative of future returns, and equity investments carry risks, especially in high-volatility sectors like tech.
Strengths of Motilal Oswal Nasdaq 100 ETF:
1) Exposure to High-Growth Technology Companies:
- The ETF tracks the Nasdaq 100 Index, which is heavily weighted towards high-growth tech companies like Apple, Microsoft, and Nvidia. These companies are generally leaders in innovation and global markets.
2) Diversification:
- By investing in this ETF, you gain exposure to 100 of the largest non-financial companies listed on the Nasdaq, providing built-in diversification across various sectors like technology, healthcare, consumer services, and more.
3) Low Expense Ratio:
- The expense ratio of the Motilal Oswal Nasdaq 100 ETF is typically low (0.24%), making it a cost-effective way to invest in the Nasdaq 100 index compared to actively managed funds.
4) Liquidity:
- Being listed on the stock exchange (NSE), the ETF is highly liquid, meaning you can buy and sell shares easily without worrying about large bid-ask spreads.
5) No Minimum Investment Requirement for Lump-Sum:
- You can invest in any quantity, making it suitable for both small and large investors. The ETF allows flexibility in investment amounts.
6) Long-Term Growth Potential:
- Over the long term, technology and innovation-focused indices have shown strong growth. Historically, companies in the Nasdaq 100 have outperformed many other sectors.
7) No Need for Demat Account if Using Fund of Fund (FoF):
- If you prefer to avoid opening a Demat account, you can invest in the Motilal Oswal Nasdaq 100 Fund of Fund (FoF), which indirectly invests in the ETF without requiring a Demat account.
Risks of Motilal Oswal Nasdaq 100 ETF:
1) Concentration Risk:
- The Nasdaq 100 is dominated by a few large technology companies, such as Apple, Microsoft, and Tesla, which means the ETF’s performance is heavily dependent on the performance of these companies. A downturn in these key stocks could lead to significant declines in the ETF’s value.
2) Sectoral Risk:
- A significant portion of the ETF is invested in the technology sector, which is highly volatile. A downturn in the tech industry could negatively impact the ETF’s returns, especially during periods of economic stress or regulatory changes.
3) Volatility:
- The Nasdaq 100 is known for its high volatility, especially due to its concentration in tech stocks. While the long-term growth potential is strong, the ETF can experience significant short-term price swings, which may be unsuitable for risk-averse investors.
4) Exposure to U.S. Market Risks:
- While the ETF tracks the Nasdaq 100, it is primarily exposed to U.S. market risks. A slowdown in the U.S. economy, changes in U.S. policies, or geopolitical tensions could negatively affect the ETF’s performance.
5) Currency Risk:
- Since the ETF invests in U.S. stocks, Indian investors are exposed to currency risk (fluctuations in the INR/USD exchange rate). If the Indian Rupee depreciates against the U.S. Dollar, the value of the ETF can be impacted.
6) Tracking Error:
- Even though the ETF aims to replicate the performance of the Nasdaq 100 Index, there may be some tracking error due to management costs, transaction costs, and other factors that prevent it from perfectly mirroring the index’s performance.
7) Market Risk:
- Like all equity-based investments, the Motilal Oswal Nasdaq 100 ETF is subject to general market risks. Economic downturns, market crashes, or systemic issues can affect the overall stock market, including the ETF’s performance.
Conclusion:
While the Motilal Oswal Nasdaq 100 ETF offers strong growth potential due to its exposure to leading technology stocks, it also comes with notable risks, especially related to market volatility and sector concentration. It’s ideal for investors with a higher risk tolerance who are looking for long-term growth in the tech sector but should be approached with caution for short-term investors or those seeking low-risk exposure.
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