Equity index ETF replication requires diversified underlying indices and substantial alignment of total assets with the benchmark. An ETF replicating a particular equity index must track an index comprising at least ten constituent stocks. In a sectoral or thematic index, any single ... Summary
Equity index ETF replication requires diversified underlying indices and substantial alignment of total assets with the benchmark.
An ETF replicating a particular equity index must track an index comprising at least ten constituent stocks. In a sectoral or thematic index, any single stock's weightage must not exceed 35 per cent; in every other index, the corresponding cap is 25 per cent. The ETF must replicate its underlying index to at least 95 per cent of total assets.
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