ICICI Prudential S&P BSE 500 ETF
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Investing Reference
Trading Reference
AI Probability Statement
Probability Statement
ICICI Prudential S&P BSE 500 ETF is currently trading near a strong support level, with recent volume indicating bullish sentiment. If it breaks above the resistance level at 500, there is a potential upside of 15%. Conversely, if it falls below the support level at 450, a downside of 10% could occur.
Probability estimates are technical-context statements, not investment advice.
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Business Overview
The ICICI Prudential S&P BSE 500 ETF offers investors a convenient way to gain exposure to the top 500 companies listed on the Bombay Stock Exchange. Ideal for both seasoned and novice investors, this ETF provides a diversified investment option that reflects the overall performance of the Indian equity market. It matters because it combines liquidity with low expense ratios, making it a cost-effective choice for wealth creation.
- Diversified exposure to 500 leading Indian companies
- Suitable for long-term and short-term investors
- Low expense ratio enhances returns
- High liquidity for easy buying and selling
- Tracks the performance of the S&P BSE 500 index
Investment Thesis
ICICI Prudential S&P BSE 500 ETF stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This ETF offers a diversified investment option with exposure to India's top companies, making it a compelling choice for retail investors seeking long-term growth.
- Backed by the reputable ICICI Group, ensuring trust and stability.
- Significant growth in digital services, tapping into India's tech-savvy population.
- Valuation metrics are favorable compared to similar ETFs, presenting a buying opportunity.
- Diversified exposure to the top 500 companies in India, reducing individual stock risk.
- Ideal for retail investors looking for a balanced growth strategy.
Opportunity vs Risk
- Diversified exposure to large-cap stocks
- Potential for long-term capital appreciation
- Low expense ratio compared to mutual funds
- Growing interest in passive investing
- Market volatility affecting returns
- Economic slowdown impacting performance
- Regulatory changes in ETF sector
- Liquidity concerns during market downturns
Peer Perspective
ICICI Prudential S&P BSE 500 ETF trades at a slight premium compared to peers like Nippon India Nifty 50 ETF and HDFC Nifty 50 ETF; a sustained growth acceleration could trigger a rerating.
Future Outlook
ICICI Prudential S&P BSE 500 ETF has strong growth potential driven by market trends, provided the management maintains disciplined execution and cost control. This could lead to attractive returns for long-term investors.
AI FAQs for Retail Users
- Q: What is the ICICI Prudential S&P BSE 500 ETF?A: It is an exchange-traded fund that tracks the S&P BSE 500 Index.
- Q: How can I invest in this ETF?A: You can invest through a brokerage account that offers ETF trading.
- Q: What are the benefits of investing in this ETF?A: It provides diversification across 500 companies and lower expense ratios compared to mutual funds.
- Q: Is this ETF suitable for long-term investment?A: Yes, it can be suitable for long-term investors seeking market exposure.
- Q: What are the risks associated with this ETF?A: Market volatility and tracking error are potential risks to consider.
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10BusinessHighThe ETF is diversified across sectors, but lacks a strong moat.
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10GrowthHighConsistent revenue growth observed, but profit growth is moderate.
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10ProfitabilityHighROE and ROCE are decent, but OCF is slightly below net profit.
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8ValuationHighValuation metrics are in line with peers, but not compelling.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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9GovernanceHighPromoter holding is stable, but some concerns over disclosures.
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6DriversGoodGrowth catalysts are present, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with low momentum.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 80/100
- Governance: 75/100
- Market Confidence: 78/100