NSE to give value of new ETF on its terminals

MUMBAI: The National Stock Exchange ( NSE) will start disseminating the value of NV20, a new exchange traded fund, on its trading terminals from Monday.

Currently the index value is computed only once at the end of the day. 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 NSE said in a release.

It consists of the 20 most liquid value blue chip companies listed on NSE. The NV20 Index has been computed historically from January 01, 2009.The NV20 Index provides exposure to 8 broader sectors of the economy. Apart from forming an ETF, the Index can be used for a variety of other purposes such as benchmarking fund portfolios, issuance of index funds and structured products.

Infosys, ICICI Bank and Reliance Industries are the top 3 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 Mr Mukesh Agarwal, CEO, IISL. For NV20, beta- which is a measure of volatility or systematic risk, is less than 1 for a tenure of greater than 1 year.