NSE to list new Exchange Traded Fund based on NV20 index

National Stock Exchange (NSE), India's leading bourse, is all set to float a new exchange traded fund (ETF). As a precursor to the new ETF listing, NSE will start disseminating the value of NV20 live on its terminal from Monday, June 22. The live real-time value will be available in NSE's Futures & Options segment on its trading terminal. The Index NV20 is designed to reflect the behaviour and performance of a diversified portfolio of value companies forming a part of CNX Nifty index. It consists of the 20 most liquid value blue chip companies listed on NSE and provides exposure to eight broader sectors of the economy, with Infosys, ICICI Bank and RIL being the top three weighted companies in the index.

"Stocks are selected on the basis of value parameters like Return on Capital Employed (RoCE), Price to Earning (PE) ratio, Price to Book Value (PB) ratio and dividend Yield (DY). Since the base of the index is CNX Nifty, which is the benchmark index of India, only large & liquid value companies form part of NV20 Index", said Mukesh Agarwal, CEO of India Index Services & Products Ltd (IISL), a subsidiary of NSE Strategic Investment Corporation Ltd.

IISL was set up to provide a variety of indices and index related services.

For NV20, beta, which is a measure of volatility or systematic risk, is less than 1 for a tenure of greater than one year.