Second CPSE ETF to be more diversified

The central government’s soon-to-be-launched second central public sector enterprises exchange-traded fund (CPSE ETF) is being planned as an attractive, diversified offering, which may constitute 20-25 stocks from across sectors.

The first CPSE ETF basket had 10 stocks, mostly drawn from the minerals and energy sectors.

The “alternative mechanism” for the second CPSE ETF, which was cleared by the Cabinet Committee on Economic Affairs, was close to finalising the constituents of the basket, sources said. The stocks will include listed state-owned companies, public sector banks and financial institutions, and the stake that the Centre holds in non-public sector undertakings (PSUs). These include the