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The exchange-traded funds (ETF) market is expected to grow on the back of continued thrust from government and the rising acceptance of such products as an investment vehicle by the retail segment, says a report. The ETF market corpus stood at Rs 778.97 billion as of December 2017, clocking an average growth of about 40 per cent since 2012. "The current exponential growth in the ETF market can be attributed to the growing acceptance of passive investing by the market participants, which is evident from the overwhelming response to the disinvestment initiatives government," according to a Reliance Securities report. And the market is expected to grow on the back of continued thrust by government and the acceptance of such products as an investment vehicle, it added. The CPSE ETF index, which was set up to facilitate divestment of select Central public sector enterprises through the ETF route, the report said the fund yielded a 16.7 per cent CAGR return between its inception on March 28, 2014 and January 10, 2018. "Over the past six months, the CPSE ETF index generated absolute return of 16.6 per cent against 9.4 per cent return from the Nifty," it added. The index-based CPSE ETF fund tracks Nifty CPSE index constituting 10 central public sector enterprises. Oil major ONGC, Coal India, IndianOil, Gail India, Oil India, Power Finance Corporation, Bharat Electronics, Rural Electrification Corporation, Engineers India and Container Corporation of India are the constituents of the Nifty CPSE Index. While the assets under management of the global ETF market stood at $4.8 trillion as of December 2017, despite impressive growth, the domestic ETF market is still at a nascent stage, the report noted.