Do you know that you can invest in the stock market with the simplicity of an index fund but with the potential edge of an active strategy? That’s exactly what Smart Beta ETFs have been designed for.
As an investor, you might be familiar with traditional ETFs that mirror market-cap indices. With Smart Beta ETFs, these funds work on rule-based strategies based on factors like value, quality, momentum, and low volatility.
In recent years, Smart Beta ETFs have gained traction among long-term investors in India. In this blog, we have curated some of these products for wealth creation.
5 Beta ETFs to Consider for Long-Term Growth
Balancing growth and stability, these Beta ETFs can help you build your financial resilience over time.
1.   Nippon India ETF NV20
This ETF mirrors the Nifty 50 Value 20 Index, helping investors gain exposure to large-cap companies that hold tremendous potential for the long term. It’s suitable for seasoned investors looking for a passive and disciplined approach to investing in fundamentally strong equity segments. Some of the key holdings of this ETF are ICICI Bank, Infosys, ITC, TCS, and SBI.
- AUM: INR 177 crore
- Expense Ratio:26%
- 1-Year Return: -11.3%
- 3-Year Return: 7&
- 5-Year Return: 7%
2.   ICICI Prudential Nifty 50 Value 20 ETF
This product is ideal for investors looking for value-style equity investing through ETFs. It replicates the Nifty 50 Value 20 ETF and is a suitable pick for those who prefer a structured and transparent approach to value investing. Some of the key sectors where this ETF diversifies its assets include financial, technology, consumer durables, automotive, and energy.
- AUM: INR 186.68 crore
- Expense Ratio: 25%
- 1-Year Return: -11.3%
- 3-Year Return: 8%
- 5-Year Return: 9%
3.   HDFC Nifty 50 Value 20 ETF
This HDFC ETF tracks the Nifty 50 Value 20 Index. It helps investors allocate their assets to undervalued yet reliable companies. Particularly, it appeals to investors looking for a systematic approach to explore funds within the large-cap sector. The fund invests in top categories like banks, IT, software, tobacco products, automotive, and power generation.
- AUM: INR 36 crore
- Expense Ratio: 20%
- 1-Year Return: -11.3%
- 3-Year Return: NA
- 5-Year Return: NA
4.   Edelweiss Nifty Alpha Low Volatility 30 Index Fund
If you are looking for passive exposure to stocks, the Edelweiss Nifty Alpha Low Volatility 30 Index Fund will be a decent choice. It is suitable for investors looking for high alpha and low volatility characteristics and helps them generate stable income. In the long term, this ETF adjusts the market risks, which makes it suitable for conservative equity investors seeking smarter indexing.
- AUM: INR 152.45 crore
- Expense Ratio: 4%
- 1-Year Return: -12.98%
- 3-Year Return: NA
- 5-Year Return: NA
5.   Nippon India Nifty Alpha Low Volatility 30 Index Fund
This Smart Beta ETF tracks multiple indices. Blending alpha generation with low volatility, it offers a decent growth potential and consistent returns to investors. If you’re planning to put your funds somewhere for the long term, this fund is among the options.
- AUM: INR 1405.42 crore
- Expense Ratio: 35%
- 1-Year Return: -2.94%
- 3-Year Return: 68%
- 5-Year Return: NA
Conclusion
With Smart Beta ETFs, investors benefit from the discipline of indexing along with factor-based strategies. In the process, you can tap into crucial factors like value, quality, momentum, and volatility without facing the complexity of actively managing your funds.
If you’re looking to build a resilient portfolio for the long term, these ETFs provide both balance and growth potential. You can benefit from compounding while reducing the risk or market downsides to eventually maximize your returns.
