Best ETFs in November 2024 Based on 5-yr Returns

Understanding Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs) offer investors a straightforward way to diversify their portfolios by tracking indices or sectors, such as the Nifty 50. ETFs blend the benefits of mutual funds with the flexibility of stocks, allowing you to hold a diversified set of assets that can be traded throughout the day on stock exchanges.

In this article, let’s explore top 5 ETFs based on 5 yr CAGR and also understand how ETFs can be a good addition to your portfolio.

Best ETFs in India – November 2024

For November 2024, here are some of the best-performing ETFs in India based on their 5-year CAGR, offering diverse sector exposure, robust fund management, and low expense ratios:

Note: This list is dated November 4, 2024, and the funds are sorted based on above mentioned criteria. 

Here’s a closer look at the top ETFs in India for November 2024, including their key features, historical performance, and unique advantages as shown in the table:

1. CPSE ETF

Managed by Himanshu Mange, the CPSE ETF focuses on a portfolio of central public sector enterprises. It is an equity ETF designed to mirror the Nifty CPSE Index.

• AUM: Rs 44,278.8 crore
• 5-yr CAGR: 29.44%
• Expense Ratio: 0.07%
• Inception Date: March 28, 2014
• NAV: Rs 91.43

1. Nippon India ETF Nifty Midcap 150

Managed by Himanshu Mange, this ETF provides exposure to midcap stocks through the Nifty Midcap 150 – TRI index. An equity ETF focusing on the dynamic midcap segment. 

• AUM: Rs 1,752.2 crore
• 5-year CAGR: 27.91%. 
• Expense Ratio: 0.21%
• Inception Date: Launched on January 31, 2019
• NAV: Rs 213.19 

1. Motilal Oswal Nifty Midcap 100 ETF

Led by Swapnil P Mayekar, this ETF mirrors the Nifty Midcap 100 – TRI index, ideal for investors seeking midcap growth.  As an equity ETF, it targets the midcap segment. 

• AUM: Rs 554.4 crore
• 5-year CAGR: 27.61%
• Expense Ratio:0.22%
• Inception Date: Launched in February 2011
• NAV: Rs 59.69 

1. Bharat 22 ETF

Managed by Nishit Patel, Bharat 22 ETF invests in a basket of large public sector enterprises across various sectors. Focused on equity, it tracks the BSE Bharat 22 Index – TRI, which comprises blue-chip companies with a broad industry base.

• AUM: Rs 20,613.4 crore 
• 5-year CAGR: 25.13%
• Expense Ratio: 0.07%
• Inception Date: Launched on November 24, 2017
• NAV: Rs 112.28 

1. ICICI Pru Thematic Advantage Fund (FOF)

Overseen by Sankaran Naren, this fund provides thematic exposure through a fund-of-funds structure, giving investors access to a blend of large-cap and midcap stocks. This FOF belongs to the domestic segment, tracking the NIFTY 200 – TRI index

• AUM: IRs 1,940.5 crore
• 5-year CAGR: 24.98%. 
• Expense Ratio: 1.52%
• Inception Date: Launched in December 18, 2003
• NAV: Rs 213.68 

Each of these ETFs offers unique sector or market exposure with competitive expense ratios and strong performance. From stable public sector ETFs like CPSE and Bharat 22 to high-growth midcap funds like Nippon and Motilal Oswal, these ETFs provide opportunities to diversify your portfolio efficiently in November 2024.

Why Choose ETFs?

ETFs have gained popularity for their affordability, transparency, and ease of trading. Here’s why ETFs are considered a smart choice for both beginners and experienced investors:

1. Low Fees: ETFs generally come with lower expense ratios than traditional mutual funds, helping investors maximize net returns over time.
2. Liquidity: Since ETFs are traded on exchanges, they offer the flexibility of intraday trading, allowing investors to buy and sell throughout the trading day.
3. Transparency: ETF holdings are typically disclosed daily, providing investors with a clear view of the fund’s assets, unlike some mutual funds where holdings may be reported less frequently.

How to Select the Right ETF?

Selecting an ETF is a strategic decision that should align with your investment goals and risk tolerance. Here are key factors to consider when choosing an ETF:

• Define Your Investment Objective: Decide whether you want broad market exposure, specific sector focus, or even commodity-based ETFs. Your objective will shape the kind of ETF you select.
• Expense Ratio: Lower expense ratios contribute to better returns over time. Always compare the fees associated with ETFs.
• Tracking Accuracy: Look for ETFs that closely match their benchmark performance. Lower tracking error indicates consistent returns aligned with the index.
• Liquidity: Higher liquidity often translates to better pricing and narrower bid-ask spreads, making the ETF easier to buy and sell at a fair price.

In summary, these top-performing ETFs with strong 5-year returns are a smart choice for November 2024. They offer a steady path through the current market dip, giving your portfolio both growth and stability.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.