SBI ETF Nifty 50 is touted as the highest EFT with regard to AUM of 92,965 crore. I was aware that pension funds have invested in this fund and was trying to search who held the units, Is there any site which will tell me who are the major AMC or pension fund who own this fund.
SBI also have an index fund - The commission is 0.80 but the NAV is 134 as against 158 for ETF. Does this difference matter, I own ETF and since the Index fund is now cheaper at 134 will it be right to buy the cheaper index fund.
The confusion is in the end I am getting the same 50 shares.
As far as I know, the shareholding pattern for ETFs is not public. Due to this, it is likely not possible to know shareholdings of Pension funds, Insurance Funds, exempted PF Trusts, etc in this ETF. But EPFO shares details about their investments via its Annual Reports. As per the latest Annual Report available on their website (2018-2019 - Page 66), the breakdown is as follows
Scheme
SBI MF
UTI MF
BHARAT 22
CPSE
NIFTY 50
SENSEX
NIFTY 50
SENSEX
EPFO Staff Provident Fund
42.60
28.84
0.00
0.00
0.00
0.00
EPFO Staff Pension and
Gratuity
647.41
238.98
0.00
0.00
0.00
0.00
Employees Deposit Linked
Insurance Scheme
885.45
321.57
0.00
0.00
0.00
0.00
Employees Pension Fund
12106.16
4084.45
3310.11
1140.76
1028.12
743.72
Employees Provident Fund
25532.13
8594.55
7021.85
2361.61
2746.62
3489.09
Sub Total (in crores)
39213.75
13268.39
10331.96
3502.37
3774.74
4232.81
Total (in crores)
74,324.02
The above data is till March 31st, 2019. For added context, the total AUM of SBI Nifty 50 ETF on March 28, 2019 was 51,779.36 crores. (which means around 75% of the AUM was being contributed by EPFO alone)
The total AUM in all the above-mentioned ETFs increased to 86,966 crores in September 2019 (as reported in a question asked in Lok Sabha).
Also, as per a question raised on March 15, 2021, the total investments in all the above-mentioned ETFs in the past few years is as follows -
Financial Year
Total Amount (In Rs. crore)
2017-18
19796.24
2018-19
27743.19
2019-20
32377.26
2020 to (28.02.2021)
27532.39
The above data shows that around 59909.65 crores more has been invested in all the above-mentioned ETFs since the last Annual Report figures. For the latest shareholdings pattern for specific ETF, we will likely have to wait for EPFO to release their Annual Report or file an RTI.
134 vs 158. doesn’t matter.
If nifty goes up 10% your investment will grow 10% whether the nav is 100, 134 or 158. But it is okay to buy index funds than ETF.
also the expense ratio is 0.18 for direct growth option and not 0.80
I hold ETF say 100 units with an average cost of 140. CMP - 158
Instead of buying ETF, when Index fund is available with the same underlying security at 134 why accumulate ETF at 158. If I buy Index fund with the same amount, I will get higher number of units.
Can you please if possible explain as to why NAV does not matter.
Also please let me know why you think Index fund is better, the commission I pay for ETF is 0.07 while Index fund is 0.49%. (cross checked sbi mf website) I was willing to let go of this because the cmp was lower at 134.
Say, you sell 100 units at 158, you get 15800 and reinvest in index fund at 134, you will get 118 units.
When nifty goes up 10%, the ETF Nav will be 158+10% which will be approx 174, your value will be 17400.
Index fund 134+10% will be 147, 118 units*147 = 17400
Imagine a new fund at 10rs. you invest in that. you will get 1580 units.
after 10%, it will be Rs.11, your value will be 1580*11 = 17400.
Regarding commission, you have pay taxes when you buy and sell in zerodha.
But index funds no other charges except expense ratio, which is 0.18.
(0.49 is regular. 0.18 is for direct) go for direct, even if the nav is higher. as i said nav doesn’t matter.
Also to add to @rj07 's point. ETF are also susceptible to liquidity issue. Their market price varies with respect to their NAV. And if there isn’t enough liquidity or market makers aren’t doing a good job there is a chance that your actual price of buying may not represent correct value for underlying.
This is generally not a problem with index funds. So don’t select ETF solely based on expense ratio or Actual price.