The government of India has notified the launch of Bharat 22 ETF, as a part of its divestment initiatives and it has opened today.

The Bharat-22 ETF consists  of 22 blue-chip stocks, which are mostly profit-making, dividend paying public sector enterprises with Maharatna and Navratna status. The ETF will also include some of the government’s holdings in SUUTI (Specified Undertaking of Unit Trust of India).

Further, Bharat-22 ETF will comprise of the leading blue-chips such as ITC (through SUUTI) with 15.2% weightage, SBI with 8.6% weightage. Other leading companies like NTPC, ONGC, Indian Oil Corp, BPCL, NALCO, Coal India, Power Grid and others will constitue the ETF.

Moreover, the ETF will be one of the most diversified portfolio, with companies from 6 different  sectors including basic materials, energy, finance, FMCG, industrial’s and utilities. This will spread out the portfolio and lower risk of concentration, increasing risk adjusted returns over the long term.

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