Mirae Asset launches one-of-its-kind S&P 500 Top 50 Index-based funds Mirae Asset S&P 500 Top 50 ETF
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Mumbai, September 1, 2021: Mirae Asset Investment Managers (India) Private Limited, one of the fastest growing fund houses in the country in the equities and debt segments, today announced the launch of India’s first passive products which aim to provide sector agnostic exposure to 50 Mega-cap companies of the US, ‘Mirae Asset S&P 500 Top 50 ETF’, an open-ended scheme replicating/tracking S&P 500 Top 50 Total Return Index and ‘Mirae Asset S&P 500 Top 50 ETF Fund of Fund’, an open-ended fund of fund scheme predominantly investing in Mirae Asset S&P 500 Top 50 ETF.
The NFO for both the funds will open for subscription on September 1, 2021. While Mirae Asset S&P 500 Top 50 ETF will close on September 14, 2021, Mirae Asset S&P 500 Top 50 ETF Fund of Fund will close on September 15, 2021.
Mirae Asset S&P 500 Top 50 ETF will be managed by Mr. Siddharth Srivastava, while Mirae Asset S&P 500 Top 50 ETF Fund of Fund will be managed by Ms. Ekta Gala. ‘Mirae Asset S&P 500 Top 50 ETF Fund of Fund’ will also offer investors Regular Plan and Direct Plan with Growth Option.
Key Highlights:
* The S&P 500 Top 50 Index is designed to represent the performance of 50 US Mega-cap companies, across sectors, selected based on free float market cap from S&P 500 Index.
* The S&P 500 Top 50 Index captures several well-known sector leading companies from Information Technology to health care, financials to consumer, energy to communication etc., having total market cap of over USD 23 Trillion which is more than 8 times the size of India’s Gross Domestic Product (GDP).
* 20 out of the 50 companies in the S&P 500 Top 50 Index have made it to the list of Top 50 innovative companies for the year 2020 as per Boston Consultancy Group (BCG).
* S&P 500 Top 50 (INR) has outperformed Nifty 50 by more than 10% in the last 10, 5, 3, 2 years period, respectively.
* The index is reconstituted annually in the month of June. On an average in last 5 years, 4 companies have moved in and out of this index annually during reconstitution. This keeps index relevant as the companies and sector exposure in the index portfolio evolves as the US market evolves.
* Investing in the S&P 500 Top 50 Index will also allow Indian investors to benefit from rupee depreciation.
* Diversification of country risk.
* The funds provide exposure to all sector forming part of the Top 50 space unlike Tech-focused US passive or active funds.
* The Top 50 portfolio has delivered higher returns than S&P 500 index with high correlation.
“US markets offer a huge opportunity for Indian investors to take exposure in the leading Mega-cap companies across sectors. These companies through a strong suite of products and services and zeal to innovate are setting benchmarks for others to follow. We have watched these companies grow over the years, establish their dominance and more often than not become part of our lives. Through Mirae Asset S&P 500 Top 50 ETF’ and the ‘Mirae Asset S&P 500 Top 50 ETF Fund of Fund’, investors may aim to participate in the growth story of these sector leading Mega-cap companies,” said Mr. Swarup Mohanty, CEO, Mirae Asset Investment Managers (India) Pvt. Ltd.
The minimum initial investment in both the schemes will be Rs 5,000 and multiples of Re 1 thereafter during the NFO.
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